Heterogeneity of Households in the Euro Area, Hungary, and Poland in Terms of the Usage of Financial Assets and Debt on the Basis of the Household Finance and Consumption Survey

Anna Magdalena Korzeniowska

Abstract


This article analyses areas where there are differences in household behaviour in selected countries in terms of financial assets and debt held. The author hypothesizes that although the Euro Area countries share a common monetary policy – which defines some of the financial market conditions and activity of financial institutions – the behaviour of households on financial markets differs considerably. The subject of analysis is the structure of financial instruments held by households and the activity of households on financial markets by age and income. The author also analyses the heterogeneity of households using hierarchical cluster analysis, which shows significant diversity in the percentage of households holding financial assets together with debt as well as diversity in the value of the financial products held by them.


Keywords


household finance, financial assets, household debt, distribution of assets

References


Arrondel, L., Bartiloro, L., Fessler, P., Lindner, P., Mathä, T. Y., Rampazzi, C., Savignac, F., Schmidt, T., Schürz, M. and Vermeulen, P. (2016) “How Do Households Allocate Their Assets? Stylized Facts from the Eurosystem Household Finance and Consumption Survey”. International Journal of Central Banking 2 (12).

Arrondel, L., Roger, M. and Savignac, F. (2014) Wealth and Income in the Euro Area: Heterogeneity in Households’ Behaviours. Direction Générale des Études et des Relations Internationales.

Arrondel, L. and Savignac, F. (2016) “Households’ Real Estate and Financial Asset Holdings: What Differences in Investment Behaviour within the Euro Area?”. Rue de la Banque 19: 1–2.

Bover, O., Schürz, M., Slacalek, J. and Teppa, F. (2016) “Eurosystem Household Finance and Consumption Survey: Main Results on Assets, Debt, and Saving”. International Journal of Central Banking 12 (2): 1–13.

Christelis, D., Ehrmann, M. and Georgarakos, D. (2015) “Exploring Differences in Household Debt Across Euro Area Countries and the United States”. Working Papers, Bank of Canada (2015–16).

Du Caju, P., Roelandt, T., Van Nieuwenhuyze, C. and Zachary, M. D. (2014) “Household Debt: Evolution and Distribution”. Economic Review, September, 61–80.

Georgarakos, D., Haliassos, M. and Pasini, G. (2014) “Household Debt and Social Interactions”. Review of Financial Studies 27 (5): 1404–1433, https://doi.org/10.1093/rfs/hhu014.

Kukk, M. (2014). Distinguishing the Components of Household Financial Wealth: the Impact of Liabilities on Assets in Euro Area Countries. Eesti Pank. Working Paper Series No. 2.




DOI: https://doi.org/10.15678/AOC.2019.2004