2026 Articles

Courageous but Indebted? Regional Courage is Associated With Higher Debt-to-Income Ratio in the United States

Packer, Jali; Gladstone, Joe; Götz, Friedrich

Geographic disparities in household indebtedness present an economic puzzle that traditional models inadequately explain. We examine whether regional psychological traits—specifically courage—help explain these differences. Analyzing data from 836,184 individuals across 1,220 U.S. counties, we tested whether areas with higher collective courage (willingness to act despite fear) exhibit higher debt-to-income ratios. Using spatial regression techniques to account for geographic clustering and controlling for sociodemographic factors and Big Five personality traits, we found that courage significantly predicted county-level debt-to-income ratios. A one standard deviation increase in regional courage was associated with a 0.22 standard deviation increase in debt-to-income—an effect that persisted across different geographic scales and modeling approaches. Courage hotspots in western and southern regions showed corresponding patterns of higher indebtedness. These findings reveal that psychological traits traditionally viewed as virtuous may have unintended economic consequences, highlighting the importance of considering regional psychology when designing financial policies and interventions.

Keywords: courage, household debt, financial risk-taking, regional personality, geographical psychology