Negative Net Worth and the Life Cycle Hypothesis

Financial Counseling and Planning, 1996

Posted: 27 Nov 1996

See all articles by Peng Chen

Peng Chen

Ibbotson Associates

Michael S. Finke

The American College

Abstract

Characteristics of families with a negative net worth are explored using data from the 1992 Survey of Consumer Finances. Life cycle theory is applied to predict which households have a negative net worth. Logit analysis showed that well educated young households who might expect increasing incomes are more likely to have a negative net worth.

JEL Classification: D91

Suggested Citation

Chen, Peng and Finke, Michael S., Negative Net Worth and the Life Cycle Hypothesis. Financial Counseling and Planning, 1996, Available at SSRN: https://ssrn.com/abstract=3546

Peng Chen (Contact Author)

Ibbotson Associates ( email )

225 North Michigan Avenue
Suite 700
Chicago, IL 60601
United States
(312) 616-1620 (Phone)
(312) 616-0404 (Fax)

Michael S. Finke

The American College ( email )

Bryn Mawr, PA 19010
United States

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