Business insolvencies, income inequality and household borrowing | SHoF February Newsletter

Business insolvencies, income inequality and household borrowing | SHoF February Newsletter

In this issue:

  • Interviews with SHoF’s researchers about business insolvency in Europe and income inequality in Sweden
  • Upcoming seminar on household borrowing


Rising business insolvencies

Bankruptcies declaration increased by 26.8% in the fourth quarter of 2022 compared to the quarter earlier. Similarly in Sweden, the country's bankruptcies increased by 60% in January 2023 compared to the?same period?previous year. The only comparable event in the Swedish data going back to 1995 is the bankruptcy wave of 2008-2009?during the financial crisis.

We have with spoken our researchers about rising corporate insolvency in Europe and how the end of different government support programs can affect businesses and economies around Europe.


Using data to understand inequality

One of the biggest questions in economics is finding out why income inequality is so much lower than wealth inequality.

SHoF’s Paolo Sodini, professor of finance at the Stockholm School of Economics and director of the Institute for Microdata (MiDa), says that Sweden offers an interesting laboratory to investigate this question.?

“People expect Sweden to be egalitarian, and sure, it is true for income. But for wealth, it is definitely not,” Sodini says.?

Read more about how Swedish administrative data on asset holdings can be used to understand the origins and dynamics of wealth inequality.


April 4 - Perspectives on household borrowing

Join a seminar on the household sector’s exposure to financial risk featuring experts from academia, policy, and the private sector.?High household debt ratios can be a systemic risk when interest rates rise,?and some groups of borrowers may be more exposed than others. The seminar will explore these issues from multiple perspectives.?

Participants:

? Paolo Sodini, Professor of Finance, Stockholm School of Economics

? Henrik Braconier , Chief Economist, Finansinspektionen

? Arturo Arques , Private Economist,? Swedbank

? Shoka ?hrman , Savings Economist and Strategist,? SPP

Click to learn more and register:


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About the Swedish House of Finance

The Swedish House of Finance at the Stockholm School of Economics was founded in 2011 through a government initiative to strengthen financial research in Sweden. Today it is one of the top research institutions in Europe. The Swedish House of Finance promotes a dialogue between researchers and decision-makers in the private and public financial sector.

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