Household heterogeneity in the euro area since the onset of the Great Recession

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The HFCN collects household-level data on households' fi nances and consumption in the euro area through a harmonised survey. The HFCN aims at studying in depth the micro-level structural information on euro area households' assets and liabilities. The objectives of the network are: Terms of use: Documents in1) understanding economic behaviour of individual households, developments in aggregate variables and the interactions between the two;2) evaluating the impact of shocks, policies and institutional changes on household portfolios and other variables;3) understanding the implications of heterogeneity for aggregate variables; 4) estimating choices of different households and their reaction to economic shocks; 5) building and calibrating realistic economic models incorporating heterogeneous agents; 6) gaining insights into issues such as monetary policy transmission and fi nancial stability.The refereeing process of this paper has been co-ordinated by a team composed of Gabriel Fagan (ECB), Pirmin Fessler (Oesterreichische Nationalbank), Michalis Haliassos (Goethe University Frankfurt), Tullio Jappelli (University of Naples Federico II), Sébastien PérezDuarte (ECB), Jiri Slacalek (ECB), Federica Teppa (De Nederlandsche Bank), Peter Tufano (Oxford University) and Philip Vermeulen (ECB).The paper is released in order to make the results of HFCN research generally available, in preliminary form, to encourage comments and suggestions prior to fi nal publication. The views expressed in the paper are the author's own and do not necessarily refl ect those of the ESCB. AcknowledgementsThis paper uses data from the Eurosystem Household Finance and Consumption Survey. We thank John Sabelhaus and seminar participants at the ECB and the Eurosystem Household Finance and Consumption Network for useful comments. The views presented in this paper are those of the authors, and do not necessarily refl ect those of the European Central Bank. Miguel AmpudiaEuropean Central Bank; e-mail: miguel.ampudia@ecb.europa.eu Akmaral PavlickovaEuropean Central Bank; e-mail: akmaral.pavlickova@ecb.europa.eu Jiri SlacalekEuropean Central Bank; e-mail: jiri.slacalek@ecb.europa.eu Edgar VogelEuropean Central Bank; e-mail: edgar.vogel@ecb.europa.eu AbstractWe extend household-level data from the Household Finance and Consumption Survey using aggregate series and micro-simulations to investigate heterogeneity in the euro area. We quantify shocks to wealth, income and financial pressure face...

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“…In this context and following the economic literature, we employ four objective indicators of debt burden, often used in empirical research (Faruqui, 2008;Albacete and Lindner, 2013;Costa and Farinha, 2012;Ampudia, Pavlickova, Slacalek and Vogel, 2016;Bankowska et al, 2015).…”

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