We study the role of household saving behaviour, of individual motives for saving and that of perceived liquidity constraints on household finances in the 15 Euro Area countries. The empirical analysis is based on the Household Finance and Consumption Survey (HFCS), a new harmonized data set collecting detailed information on wealth holdings, consumption and income at the household level. We find evidence of some degree of homogeneity across countries with respect to saving preferences and the relative importance of alternative motives for saving. In addition we find a more heterogeneous impact of credit constraints, that are perceived to be binding for specific groups of respondents and geographic regions. Both household characteristics and institutional macroeconomic variables are significant and economically important determinants of household saving preferences and of the credit constraints they face. These findings have relevant policy implications if interpreted in light of the recent financial crisis, the country-specific institutional settings, and the different degree of development of formal lending channels.Jel-Classification: C8; D12; D14; D91

This paper uses new household survey data to study expectation formation during the recent housing boom in Germany. The cross section of forecasts depends on only two household characteristics: location and tenure. The average household in a region responds to local conditions but underpredicts local price growth. Renters make on average higher and hence more accurate forecasts than owners, although their forecasts are more dispersed and their mean squared forecast errors are higher. A quantitative model of learning about housing cost can match these facts. It emphasizes the unique information structure of housing among asset markets: renters who do not own the asset are relatively well informed about its cash flow, since they pay for housing services that owners simply consume. Renters then make more accurate forecasts in a boom driven by an increase in rents and recovery from a financial crisis.

No abstract

We study the role of household saving behaviour, of individual motives for saving and that of perceived liquidity constraints on household finances in the 15 Euro Area countries. The empirical analysis is based on the Household Finance and Consumption Survey (HFCS), a new harmonized data set collecting detailed information on wealth holdings, consumption and income at the household level. We find evidence of some degree of homogeneity across countries with respect to saving preferences and the relative importance of alternative motives for saving. In addition we find a more heterogeneous impact of credit constraints, that are perceived to be binding for specific groups of respondents and geographic regions. Both household characteristics and institutional macroeconomic variables are significant and economically important determinants of household saving preferences and of the credit constraints they face. These findings have relevant policy implications if interpreted in light of the recent financial crisis, the country-specific institutional settings, and the different degree of development of formal lending channels.Jel-Classification: C8; D12; D14; D91

No abstract