Chen&Finke, 1996

Chen, P. & Finke, M. S. (1996). Negative
Net Worth and the Life Cycle Hypothesis,
Financial Counseling
and Planning
, 87-95.

Negative Net Worth And The Life Cycle Hypothesis

Peng Chen, The Ohio State University

Michael S. Finke, The Ohio State University

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 choose to go into 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.

Key Words: Life cycle hypothesis, Net worth, Survey of Consumer


Current affiliations:

Peng Chen is Vice President for Research with Ibbotson Associates
in Chicago,

Michael S. Finke is Assistant Professor, University of Missouri,
Department of Consumer and Family


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