Abstract
The 1995 Survey of Consumer Finances was used to determine holdings of selected financial products by low-to-moderate income households, defined as households with incomes less than or equal to 80% of median household income for their region. First, we estimated determinants of holding bank accounts. Next, we estimated determinants of holding other selected products, contingent on holding a transaction account. Finally, we estimated the potential demand for these other products by households without accounts, should they become account holders. We found that if non-account holding households were to obtain accounts, they would increase their demand for credit cards, first mortgages, car loans, consumer loans, certificates of deposit, and IRA/Keogh accounts. The implications for financial institutions, policy makers, and consumer educators are presented.
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Hogarth, J.M., O'Donnell, K.H. If You Build It, Will They Come? A Simulation of Financial Product Holdings Among Low-to-Moderate Income Households. Journal of Consumer Policy 23, 409–444 (2000). https://doi.org/10.1023/A:1007222700931
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DOI: https://doi.org/10.1023/A:1007222700931