What are the determinants of financial well‐being? A Bayesian LASSO approach.

The financial well‐being (FWB) of individuals is a topic that is becoming increasingly important across a multitude of disciplines. In this study, we use the 2016 National Financial Well‐Being Survey administered by the Consumer Financial Protection Bureau to assess the determinants of an individual...

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Publicado en:American Journal of Economics & Sociology Vol. 82; no. 1; pp. 43 - 60
Autores principales: Lacombe, Donald J., Khatun, Nasima
Formato: Artículo
Publicado: Wiley-Blackwell Jan2023
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Jan2023
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        atl: What are the determinants of financial well‐being? A Bayesian LASSO approach.
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        au:
          Lacombe, Donald J.
          Khatun, Nasima
        affil: School of Financial Planning, Texas Tech University, Lubbock Texas, , USA
      su:
        United States. Consumer Financial Protection Bureau
        Well-being
        Consumer protection
        Psychological factors
        Consumer surveys
      sug:
        subj:
          Well-being
          Consumer protection
          Psychological factors
          United States. Consumer Financial Protection Bureau
          Administration of General Economic Programs
          Other Justice, Public Order, and Safety Activities
          Consumer surveys
      ab: The financial well‐being (FWB) of individuals is a topic that is becoming increasingly important across a multitude of disciplines. In this study, we use the 2016 National Financial Well‐Being Survey administered by the Consumer Financial Protection Bureau to assess the determinants of an individual's FWB. We identify 144 potential covariates that could explain variation in the FWB score of individuals. The statistical methodology of choice is the Bayesian LASSO, which is a covariate selection algorithm that also allows for the importance ranking of covariates. Out of the 144 potential covariates, we find that 26 have 95% credible intervals that do not contain zero. Broadly speaking, the results show that objective measures of financial competency and psychological and sociological factors contribute the bulk of the explanatory power that help explain an individual's FWB score.
      pubtype: Academic Journal
      doctype: Article
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    language: English
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