RDP 2022-06: Do Australian Households Borrow to Keep up with the Joneses? Appendix B: Robustness Checks
November 2022
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Total | Mortgage | Non-mortgage | |||
---|---|---|---|---|---|
Total | Home | Other property | |||
Gini coefficient | 0.00 (0.01) |
−0.00 (0.00) |
0.00 (0.00) |
−0.01** (0.00) |
0.00 (0.01) |
No of observations | 7,646 | 7,646 | 7,646 | 7,646 | 7,646 |
Non-mortgage | |||||
Credit card | Hire purchase | Car | Business | Investment | |
Gini coefficient | −0.01 (0.01) |
0.00 (0.00) |
0.01*** (0.00) |
0.00 (0.00) |
0.00 (0.00) |
No of observations | 7,646 | 7,646 | 7,646 | 7,646 | 7,646 |
Household covariates | Y | Y | Y | Y | Y |
SA3 covariates | Y | Y | Y | Y | Y |
SA3 time trends | Y | Y | Y | Y | Y |
Notes: Clustered standard errors at SA3 level are in parentheses. ***, ** and * denote statistical significance at the 1, 5 and 10 per cent levels, respectively. Sources: ABS; Author's calculations; HILDA Survey Release 19.0 |
Total | Mortgage | Non-mortgage | |||
---|---|---|---|---|---|
Total | Home | Other property | |||
Gini coefficient | −5.35 (15.21) |
−8.70 (6.19) |
−4.24 (5.82) |
−4.47 (3.88) |
3.35 (14.00) |
No of observations | 18,010 | 18,010 | 18,010 | 18,010 | 18,010 |
Non-mortgage | |||||
Credit card | Hire purchase | Car | Business | Investment | |
Gini coefficient | −2.03 (13.09) |
−0.01 (0.13) |
0.50 (1.32) |
1.15 (4.53) |
3.32*** (0.88) |
No of observations | 18,010 | 18,010 | 18,010 | 18,010 | 18,010 |
Household covariates | Y | Y | Y | Y | Y |
SA3 covariates | Y | Y | Y | Y | Y |
SA3 time trends | Y | Y | Y | Y | Y |
Notes: Clustered standard errors at SA3 level are in parentheses. ***, ** and * denote statistical significance at the 1, 5 and 10 per cent levels, respectively. Sources: ABS; Author's calculations; HILDA Survey Release 19.0 |
Variables in t–4 | Coefficient | Standard errors |
---|---|---|
Intention to move | −0.62 | 0.03 |
Satisfaction with neighbourhood | 0.01 | 0.03 |
Satisfaction with community | 0.14 | 0.03 |
Age | 0.00 | 0.00 |
Age squared | 0.00 | 0.00 |
Male | −0.03 | 0.02 |
Married | −0.19 | 0.04 |
Number of children | 0.04 | 0.02 |
Number of adults | 0.20 | 0.02 |
University degree | −0.21 | 0.03 |
Employed | 0.21 | 0.10 |
Not in the labour force | 0.01 | 0.10 |
Self-employed | 0.02 | 0.05 |
Gross income | 0.00 | 0.00 |
Assets | 0.00 | 0.00 |
Financial assets | 0.00 | 0.00 |
Liquid net worth | 0.00 | 0.00 |
No of observations | 18,010 | |
Lambda | 53.01 | 73.01 |
Rho | 0.06 | |
Sigma | 874.82 | |
Sources: ABS; Author's calculations; HILDA Survey Release 19.0 |
Total | Mortgage | Non-mortgage | |||
---|---|---|---|---|---|
Total | Home | Other property | |||
Gini coefficient | 3.02 (2.03) |
−0.96 (1.52) |
−1.36 (2.00) |
0.38 (1.74) |
2.59*** (0.78) |
No of observations | 7,631 | 7,631 | 7,631 | 7,631 | 7,631 |
Non-mortgage | |||||
Credit card | Hire purchase | Car | Business | Investment | |
Gini coefficient | −0.11 (0.09) |
0.00 (0.05) |
0.33** (0.16) |
0.02 (0.43) |
2.22*** (0.31) |
No of observations | 7,631 | 7,631 | 7,631 | 7,631 | 7,631 |
Household covariates | Y | Y | Y | Y | Y |
SA3 covariates | Y | Y | Y | Y | Y |
SA3 time trends | Y | Y | Y | Y | Y |
Notes: Clustered standard errors at SA3 level are in parentheses. ***, ** and * denote statistical significance at the 1, 5 and 10 per cent levels, respectively. Sources: ABS; Author's calculations; HILDA Survey Release 19.0 |
Total | Mortgage | Non-mortgage | |||
---|---|---|---|---|---|
Total | Home | Other property | |||
Gini coefficient | −1.26 (3.78) |
−6.05* (3.49) |
−2.86 (1.99) |
−3.19 (3.81) |
4.79*** (1.78) |
No of observations | 7,646 | 7,646 | 7,646 | 7,646 | 7,646 |
Non-mortgage | |||||
Credit card | Hire purchase | Car | Business | Investment | |
Gini coefficient | −0.25*** (0.09) |
0.03 (0.13) |
0.44*** (0.14) |
0.30 (1.43) |
3.87*** (1.31) |
No of observations | 7,646 | 7,646 | 7,646 | 7,646 | 7,646 |
Household covariates | Y | Y | Y | Y | Y |
SA3 covariates | Y | Y | Y | Y | Y |
SA3 time trends | Y | Y | Y | Y | Y |
Notes: Clustered standard errors at SA3 level are in parentheses. ***, ** and * denote statistical significance at the 1, 5 and 10 per cent levels, respectively. Sources: ABS; Author's calculations; HILDA Survey Release 19.0 |
Total | Mortgage | Non-mortgage | |||
---|---|---|---|---|---|
Total | Home | Other property | |||
Gini coefficient | 7.13* (4.03) |
−0.60 (2.78) |
−1.19 (2.81) |
0.53 (2.28) |
5.75*** (2.13) |
No of observations | 6,794 | 6,794 | 6,794 | 6,794 | 6,794 |
Non-mortgage | |||||
Credit card | Hire purchase | Car | Business | Investment | |
Gini coefficient | −0.14* (0.08) |
0.05 (0.05) |
0.18 (0.31) |
−0.13 (0.51) |
3.93*** (1.33) |
No of observations | 6,794 | 6,794 | 6,794 | 6,794 | 6,794 |
Household covariates | Y | Y | Y | Y | Y |
SA3 covariates | Y | Y | Y | Y | Y |
SA3 time trends | Y | Y | Y | Y | Y |
Notes: Clustered standard errors at SA3 level are in parentheses. ***, ** and * denote statistical significance at the 1, 5 and 10 per cent levels, respectively. Sources: ABS; Author's calculations; HILDA Survey Release 19.0 |
Total | Mortgage | Non-mortgage | |||
---|---|---|---|---|---|
Total | Home | Other property | |||
Gini coefficient | 5.29 (5.10) |
−4.71 (4.18) |
−5.68 (4.22) |
0.97 (4.16) |
5.49*** (1.50) |
No of observations | 6,764 | 6,764 | 6,764 | 6,764 | 6,764 |
Non-mortgage | |||||
Credit card | Hire purchase | Car | Business | Investment | |
Gini coefficient | −0.22 (0.22) |
0.02 (0.10) |
0.50** (0.22) |
0.71 (1.15) |
3.84*** (1.12) |
No of observations | 6,764 | 6,764 | 6,764 | 6,764 | 6,764 |
Household covariates | Y | Y | Y | Y | Y |
SA3 covariates | Y | Y | Y | Y | Y |
SA3 time trends | Y | Y | Y | Y | Y |
Notes: Clustered standard errors at SA3 level are in parentheses. ***, ** and * denote statistical significance at the 1, 5 and 10 per cent levels, respectively. Sources: ABS; Author's calculations; HILDA Survey Release 19.0 |
Total | Mortgage | Non-mortgage | |||
---|---|---|---|---|---|
Total | Home | Other property | |||
Gini coefficient | 17.57*** (6.72) |
0.35 (5.12) |
−2.60 (5.87) |
2.95 (2.63) |
13.07** (5.44) |
No of observations | 4,737 | 4,737 | 4,737 | 4,737 | 4,737 |
Non-mortgage | |||||
Credit card | Hire purchase | Car | Business | Investment | |
Gini coefficient | −0.11 (0.11) |
−0.02 (0.07) |
0.28 (0.38) |
0.32 (3.13) |
6.06** (3.04) |
No of observations | 4,737 | 4,737 | 4,737 | 4,737 | 4,737 |
Household covariates | Y | Y | Y | Y | Y |
SA3 covariates | Y | Y | Y | Y | Y |
SA3 time trends | Y | Y | Y | Y | Y |
Notes: Clustered standard errors at SA3 level are in parentheses. ***, ** and * denote statistical significance at the 1, 5 and 10 per cent levels, respectively. Sources: ABS; Author's calculations; HILDA Survey Release 19.0 |
Investment | Car | |
---|---|---|
1st quartile | 0.40 (0.74) |
0.11 (1.91) |
2nd quartile | 1.74** (0.84) |
0.20 (0.44) |
3rd quartile | 8.79** (5.46) |
1.14*** (0.39) |
4th quartile | 3.38 (2.99) |
0.28 (0.21) |
No of observations | 7,568 | 7,568 |
Household covariates | Y | Y |
SA3 covariates | Y | Y |
Group × SA3 interactions | Y | Y |
SA3 time trends | Y | Y |
Notes: Clustered standard errors at SA3 level are in parentheses. ***, ** and * denote statistical significance at the 1, 5 and 10 per cent levels, respectively. Sources: ABS; Author's calculations; HILDA Survey Release 19.0 |
Investment | Car | Investment | Car | ||
---|---|---|---|---|---|
Local income ranking | Self-perceived prosperity | ||||
1st quartile | 0.84 (0.88) |
0.44 (1.77) |
Very poor | 1.33 (2.02) |
1.87 (2.05) |
2nd quartile | 1.43*** (0.50) |
−0.12 (0.23) |
Poor | 1.75*** (0.58) |
0.07 (0.74) |
3rd quartile | 11.00** (4.89) |
0.96*** (0.36) |
Just getting along | 1.80*** (0.65) |
−1.29 (1.37) |
4th quartile | −0.24 (1.46) |
0.76** (0.33) |
Reasonably comfortable | 6.49** (2.84) |
1.06 (0.74) |
Very comfortable | 1.77 (1.50) |
1.01*** (0.37) |
|||
Prosperous | −0.05 (3.48) |
2.87*** (0.58) |
|||
No of observations | 7,568 | 7,568 | No of observations | 6,952 | 6,952 |
Life cycle | Housing tenure | ||||
20 ≤ Agei,t–4 ≤ 39 | 2.32*** (0.66) |
−0.69 (0.82) |
Renters | 0.86 (0.65) |
−0.30 (1.01) |
40 ≤ Agei,t–4 ≤ 64 | 4.79** (2.09) |
1.25*** (0.43) |
Mortgagors | 9.01*** (3.16) |
0.75 (0.76) |
Agei,t–4 ≥ 65 | 0.75 (0.93) |
0.29 (0.31) |
Outright home owners | 1.84 (2.74) |
1.23* (0.72) |
No of observations | 7,395 | 7,395 | No of observations | 5,958 | 5,958 |
Hand-to-mouth | Ability to raise emergency fund | ||||
Hand-to-mouth | 1.41* (0.77) |
−0.50 (0.35) |
Cannot raise easily | 1.77* (0.97) |
−0.11 (0.26) |
Not hand-to-mouth | 3.79*** (1.33) |
0.75** (0.33) |
Can raise easily | 4.54*** (1.21) |
0.62 (0.39) |
No of observations | 7,631 | 7,631 | No of observations | 6,883 | 6,883 |
Financial attitude | |||||
Not taking financial risk | 1.41 (0.88) |
0.21 (0.83) |
|||
Taking financial risk | 12.81** (5.47) |
1.56 (1.23) |
|||
No of observations | 4,645 | 4,645 | |||
Household covariates | Y | Y | Household covariates | Y | Y |
SA3 covariates and time trends | Y | Y | SA3 covariates and time trends | Y | Y |
Group × SA3 interactions | N | N | Group × SA3 interactions | N | N |
Notes: Clustered standard errors at SA3 level are in parentheses. ***, ** and * denote statistical significance at the 1, 5 and 10 per cent levels, respectively. Sources: ABS; Author's calculations; HILDA Survey Release 19.0 |
Home | Other property | Home | Other property | ||
---|---|---|---|---|---|
Local income ranking | Self-perceived prosperity | ||||
1st quartile | 4.31 (17.73) |
−29.15 (24.19) |
Very poor | −36.06 (24.63) |
71.70* (39.67) |
2nd quartile | −6.46 (6.33) |
2.68 (4.40) |
Poor | −6.65 (13.69) |
0.81 (5.29) |
3rd quartile | −6.05 (6.30) |
4.92 (7.12) |
Just getting along | 6.13 (7.30) |
4.09 (5.20) |
4th quartile | −7.34 (5.55) |
−0.06 (5.46) |
Reasonably comfortable | −1.74 (8.36) |
−6.45 (15.22) |
Very comfortable | −8.09* (4.54) |
−6.23 (4.98) |
|||
Prosperous | −19.74 (17.67) |
15.94 (18.38) |
|||
No of observations | 7,568 | 7,568 | No of observations | 6,952 | 6,952 |
Life cycle | Housing tenure | ||||
20 ≤ Agei,t–4 ≤ 39 | 3.09 (4.43) |
−1.61 (8.80) |
Renters | −0.61 (2.77) |
−53.03 (54.60) |
40 ≤ Agei,t–4 ≤ 64 | −1.28 (5.48) |
−17.34 (30.12) |
Mortgagors | 0.51 (8.54) |
4.57 (9.09) |
Agei,t–4 ≥ 65 | −9.12 (10.59) |
12.31 (25.93) |
Outright home owners | −1.47 (4.77) |
2.94 (12.41) |
No of observations | 7,395 | 3,158 | No of observations | 5,958 | 2,972 |
Hand-to-mouth | Ability to raise emergency fund | ||||
Hand-to-mouth | −0.98 (6.15) |
41.17* (23.74) |
Cannot raise easily | 1.07 (4.68) |
−2.75 (14.11) |
Not hand-to-mouth | −4.98 (4.79) |
−7.02 (19.13) |
Can raise easily | −3.01 (5.07) |
−6.06 (23.12) |
No of observations | 7,631 | 3,209 | No of observations | 6,883 | 2,955 |
Financial attitude | |||||
Not taking financial risk | −0.44 (6.51) |
0.99 (11.77) |
|||
Taking financial risk | −1.59 (11.57) |
−24.19 (88.29) |
|||
No of observations | 4,645 | 1,883 | |||
Household covariates | Y | Y | Household covariates | Y | Y |
SA3 covariates and time trends | Y | Y | SA3 covariates and time trends | Y | Y |
Group × SA3 interactions | N | N | Group × SA3 interactions | N | N |
Notes: Clustered standard errors at SA3 level are in parentheses. ***, ** and * denote statistical significance at the 1, 5 and 10 per cent levels, respectively. Sources: ABS; Author's calculations; HILDA Survey Release 19.0 |