Does Gross Average Earning Affect Residual Loans in Romania?

Abstract

The evolution of overdue credits follows a progressive trend from one year to another, startwith 2007, under the influence of some economic factors among which: the financial crisis whichstarted in 2007, the precarious financial situation of the population as a result of the financialcrisis, the unemployment rate which in the second half of 2009 reached very high levels, the leveland dynamics of the incomes, the change in prices, the change in expectations regarding the ratioof current expenses and future losses, redundancy. Using Eviews programme we study influence of gross average salary on residual loans during2007-2016. We construct an econometrical model. The model consists of two variables: theindependent variable (the gross average salary per economy) and the dependent variable (value ofoverdue loans recorded by individuals).

Keywords

• salary
• residual credits
• regression