Financial Risk of Uruguayan Households

  • Fernando Borraz Banco Central del Uruguay and dECON-FCS-Udelar
  • Nicolas Gonzalez Pampillon IEB & Universitat de Barcelona
Keywords: Financial risk, household over indebtedness, financial survey, Uruguay.


This study analyzes the financial risk of Uruguay households using the first nationally representative Uruguayan financial survey. The objective of this work is twofold. First, we simulate the impact on the finance of Uruguayan households of a negative income shock similar to the one experienced in 2002, finding that the financial risk is mild. We estimate a 175% increases in the number of households with financial burden higher than 0.75. Despite this big raise, this group is 10% of the population. Furthermore, the debt level is low in international terms. Secondly, we analyze over indebtedness among Uruguayan households. We observe that some variables are correlated with the fact of being over indebted. Nevertheless, when using the burden financial ratio as dependent variable we find that few variables can significantly explain it.
How to Cite
Borraz, F., & Gonzalez Pampillon, N. (2015). Financial Risk of Uruguayan Households. Economic Analysis Review, 29(2), 19-43. Retrieved from