Amir Shikhaliyev 533300


1)      Svensson, L. E. O. (2021). Household debt overhang did hardly cause a larger spending fall
during the financial crisis in Australia. Journal of Banking & Finance, 63, 1-13.
https://doi.org/10.1016/j.jbankfin.2015.11.021


In his paper, Svensson (2016) challenges the commonly held belief that household debt overhang led
to a significant decrease in consumer spending during the financial crisis in Australia. The study
uses data from the Household Income and Labour Dynamics in Australia survey and finds that while
households with higher levels of debt did reduce their spending, the overall impact on aggregate
consumption was modest. One strength of the paper is its empirical analysis using a large,
nationally representative dataset. However, the paper's focus on Australia limits its
generalizability to other countries. Overall, the paper provides valuable insights into the
relationship between household debt overhang and consumption during economic crises and highlights
the importance of considering multiple factors in understanding consumption behavior


2)      Wałęga, G., & Wałęga, A. (2020). Over-indebted Households in Poland: Classification Tree
Analysis. International Journal of Environmental Research and Public Health, 17(11), 3863.
https://doi.org/10.3390/ijerph17113863

The paper examines the determinants of household over-indebtedness in Poland and analyzes the main
factors that contribute to the likelihood of over-indebtedness using classification tree analysis.
The study utilized a survey conducted among households that had at least one outstanding loan in
Poland. One strength of the paper is that it provides a detailed analysis of the determinants of
household over-indebtedness in Poland, which can be useful for policymakers in developing
strategies to address this issue. The use of classification tree analysis also provides a clear and
practical approach to identifying the most important factors that contribute to over-indebtedness.
The study highlights the importance of financial education and income support for low-income
households, which can help reduce their risk of over-indebtedness. Overall, this paper is relevant
for researchers and policymakers interested in the issue of household over-indebtedness and
provides insights that can be applied in other contexts as well.


3)      Kim, Y.K., Lima, G.T., & Setterfield, M. (2019). Political aspects of household finance:
debt, wage bargaining, and macroeconomic (in)stability. Cambridge Journal of Economics, 43(4),
1087-1108. DOI: 10.1093/cje/bey020


The paper explores the political economy of household finance and its impact on macroeconomic
instability. The authors argue that household debt and wage bargaining can have significant effects
on economic growth and stability, and these factors are shaped by political institutions and power
relations. The authors use a theoretical model and empirical analysis to examine the interplay
between household debt, wage bargaining, and macroeconomic performance. The paper presents an
innovative approach to understanding the political economy of household finance and its impact on
macroeconomic stability. The authors provide a well-supported argument for the importance of
political institutions and power relations in shaping household debt and wage bargaining, and
ultimately, their impact on macroeconomic performance. This paper provides useful insights into the
complex relationship between household finance and macroeconomic stability. It highlights the need
for policymakers to consider the political economy of household finance when designing economic
policies.