Individual Characteristics and the Propensity for Personal Indebtedness: A Behavioral Perspective
Name: EMMANUEL MARQUES SILVA
Publication date: 04/08/2025
Examining board:
Name |
Role |
|---|---|
| ADELSON PEREIRA DO NASCIMENTO | Examinador Externo |
| ALFREDO SARLO NETO | Examinador Interno |
| DANIEL FONSECA COSTA | Examinador Externo |
| PATRICIA MARIA BORTOLON | Presidente |
| RAFAEL DE LACERDA MOREIRA | Examinador Interno |
Summary: This thesis analyzed how individual differences influence the propensity for personal
indebtedness from a behavioral economics perspective. It is based on the assumption that
financial decisions are not solely determined by economic and demographic factors, but also
by personality traits, cognitive biases, and levels of financial knowledge. The proposed
theoretical model integrates the Big Five personality traits, the mental accounting bias, and
financial knowledge as central variables for understanding debt behavior. The research was
conducted through seven complementary articles. The first two consisted of systematic
literature reviews aimed at mapping the scientific production related to personal indebtedness
and mental accounting, serving as the conceptual foundation for the empirical phase. The
following four studies focused on the development and validation of psychometric instruments
to measure debt propensity, personality traits, susceptibility to mental accounting, and financial
knowledge. Finally, the seventh study examined the relationships among the proposed variables
through Structural Equation Modeling (SEM) and robust multiple linear regression analysis.
The main findings reveal that Conscientiousness is negatively associated with debt propensity,
acting as a protective factor. Conversely, Openness to Experience and Neuroticism show
positive relationships with indebtedness. Mental accounting was found to play a moderating
role by reducing the effect of Openness to Experience, suggesting that this bias may act as a
psychological barrier against excessive debt. On the other hand, financial knowledge was
shown to enhance the protective effects of Conscientiousness, functioning as a facilitator of
financial self-regulation. The originality of this thesis lies in the theoretical and empirical
integration of psychological and economic dimensions into a comprehensive model applied to
the Brazilian context. The findings provide relevant contributions to the advancement of
academic literature, the development of public financial education policies, and the design of
more effective behavioral interventions. As a future perspective, it is suggested that this model
be replicated in intergenerational and longitudinal studies to investigate potential differences in
debt patterns across Generations Y (Millennials), Z, and Alpha.
