A Bigger House at the Cost of an Empty Fridge? The Effect of Households' Indebtedness on Their Consumption: Micro-Evidence Using Belgian Hfcs Data

Caju, Philip Du; Périlleux, Guillaume; Rycx, François; Tojerow, Ilan

doi:10.2139/ssrn.3808456

SSRN Journal

2021

DOI: 10.2139/ssrn.3808456

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A Bigger House at the Cost of an Empty Fridge? The Effect of Households' Indebtedness on Their Consumption: Micro-Evidence Using Belgian Hfcs Data

Philip Du Caju

Guillaume Périlleux

François Rycx

et al.

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2023

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Poor and wealthy hand-to-mouth households in Belgium

Cherchye,

Demuynck,

De Rock

et al. 2023

Rev Econ Household

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We identify the population shares of poor hand-to-mouth households, wealthy hand-to-mouth households and non hand-to-mouth households in Belgium. We apply the methodology proposed by and Kaplan, Violante and Weidner (2014) to the Belgian component of the Household Finance and Consumption Survey. We find that the fraction of hand-to-mouth households in Belgium is substantial and predominantly consists of wealthy hand-to-mouth households. We also compare the observable characteristics and marginal propensities to consume (MPCs) of the three household types We find that Belgian wealthy hand-to-mouth households have characteristics that resemble those of the non hand-tomouth households, while their MPCs are often more similar to those of the poor hand-to-mouth households. This pleads for giving a unique place to each type of households when evaluating the effects of fiscal policy.

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Poor and wealthy hand-to-mouth households in Belgium

Cherchye,

Demuynck,

De Rock

et al. 2023

Rev Econ Household

View full text Add to dashboard Cite

show abstract

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A Bigger House at the Cost of an Empty Fridge? The Effect of Households' Indebtedness on Their Consumption: Micro-Evidence Using Belgian Hfcs Data

Cited by 1 publication

References 34 publications

Poor and wealthy hand-to-mouth households in Belgium

Poor and wealthy hand-to-mouth households in Belgium

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