Household financial fragility has received considerable attention following the global
financial crisis, but substantial gaps remain in the analytical underpinnings of household
financial vulnerability assessment, as well as in data availability. This paper aims at
integrating the contributions in the literature in a coherent fashion. The study proposes also
analytical and estimation extensions aimed at improving the quality of estimates and
allowing the assessment of household financial vulnerability in presence of data limitations.
The result of this effort is a comprehensive framework, that has wide applicability to both
advanced and developing economies. For illustrative purposes the paper includes a detailed
application to one developing country (Namibia).