Determinants of Personal Financial Distress in New Zealand
Massey University Department of Commerce Working Paper No. 04.33
21 Pages Posted: 13 May 2005
Date Written: December 2004
Abstract
This research centers on the financial survival experience of participants in a New Zealand court-administered debt repayment plan. Using Kaplan-Meyer estimators of survival and hazard functions, we summarize and plot survival data. Group experience is compared by means of log-rank tests. The proportional hazard models, fitted over a partitioned time axis, demonstrate that a number of factors are predictive of defaulted debtors' financial survival. The results demonstrate the potential for a wider use of survival models in the analysis of personal loan data.
Keywords: Consumer debt, personal bankruptcy, court-administered repayment plan, survival analysis, Cox proportional hazards regression, New Zealand
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