Household debt and household spending behavior: evidence from Malaysia
Using data collected from urban households in the Klang Valley, Malaysia, this study examined the impact of household debt on urban household consumption decisions. The findings revealed that household debt does not generally affect consumption decisions, except in the case of expenditure on vacat...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2020
|
| Online Access: | http://journalarticle.ukm.my/15593/ http://journalarticle.ukm.my/15593/1/jeko_54%281%29-8.pdf |
| _version_ | 1848813835344936960 |
|---|---|
| author | Cai, Yunchao Selamah Abdullah Yusof, Ruzita Mohd Amin, Mohd Nahar Mohd Arshad, |
| author_facet | Cai, Yunchao Selamah Abdullah Yusof, Ruzita Mohd Amin, Mohd Nahar Mohd Arshad, |
| author_sort | Cai, Yunchao |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | Using data collected from urban households in the Klang Valley, Malaysia, this study examined the impact of household
debt on urban household consumption decisions. The findings revealed that household debt does not generally affect
consumption decisions, except in the case of expenditure on vacation, which tends to be reduced for households
facing high levels of debt. Furthermore, general financial wellness tends to be the main factor affecting consumption
rather than debt. Households with poorer financial wellness make more frequent cuts to daily meals, fruit, utility,
transportation, clothing, medical care, vacations, and leisure activities. Although the impact of debt on consumption
is not extensive, it must be closely monitored to ensure that the risk is contained and that the wellbeing of households
is not adversely affected. |
| first_indexed | 2025-11-15T00:24:30Z |
| format | Article |
| id | oai:generic.eprints.org:15593 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:24:30Z |
| publishDate | 2020 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:155932020-11-09T03:01:43Z http://journalarticle.ukm.my/15593/ Household debt and household spending behavior: evidence from Malaysia Cai, Yunchao Selamah Abdullah Yusof, Ruzita Mohd Amin, Mohd Nahar Mohd Arshad, Using data collected from urban households in the Klang Valley, Malaysia, this study examined the impact of household debt on urban household consumption decisions. The findings revealed that household debt does not generally affect consumption decisions, except in the case of expenditure on vacation, which tends to be reduced for households facing high levels of debt. Furthermore, general financial wellness tends to be the main factor affecting consumption rather than debt. Households with poorer financial wellness make more frequent cuts to daily meals, fruit, utility, transportation, clothing, medical care, vacations, and leisure activities. Although the impact of debt on consumption is not extensive, it must be closely monitored to ensure that the risk is contained and that the wellbeing of households is not adversely affected. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/15593/1/jeko_54%281%29-8.pdf Cai, Yunchao and Selamah Abdullah Yusof, and Ruzita Mohd Amin, and Mohd Nahar Mohd Arshad, (2020) Household debt and household spending behavior: evidence from Malaysia. Jurnal Ekonomi Malaysia, 54 (1). pp. 111-120. ISSN 0127-1962 https://www.ukm.my/fep/jem/content/2020.html |
| spellingShingle | Cai, Yunchao Selamah Abdullah Yusof, Ruzita Mohd Amin, Mohd Nahar Mohd Arshad, Household debt and household spending behavior: evidence from Malaysia |
| title | Household debt and household spending behavior: evidence from Malaysia |
| title_full | Household debt and household spending behavior: evidence from Malaysia |
| title_fullStr | Household debt and household spending behavior: evidence from Malaysia |
| title_full_unstemmed | Household debt and household spending behavior: evidence from Malaysia |
| title_short | Household debt and household spending behavior: evidence from Malaysia |
| title_sort | household debt and household spending behavior: evidence from malaysia |
| url | http://journalarticle.ukm.my/15593/ http://journalarticle.ukm.my/15593/ http://journalarticle.ukm.my/15593/1/jeko_54%281%29-8.pdf |