Poor and wealthy hand-to-mouth households in Belgium

Laurens Cherchye, Thomas Demuynck, Bram De Rock, Mariia Kovaleva (), Geoffrey Minne, Maite De Sola Perea () and Frederic Vermeulen
Additional contact information
Mariia Kovaleva: ECARES, Université Libre de Bruxelles and Department of Economics, University of Leuven (KU Leuven). Avenue F. D. Roosevelt 50, CP 114, B-1050 Brussels, Belgium.
Maite De Sola Perea: Economics and Research Department, National Bank of Belgium

No 432, Working Paper Research from National Bank of Belgium

Abstract: 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 Kaplan and Violante (2014) 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-to-mouth 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

Keywords: : savings; hand-to-mouth households; liquidity; marginal propensity to consume (MPC (search for similar items in EconPapers)
JEL-codes: D12 D15 E2 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2023-02
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Related works:
Journal Article: Poor and wealthy hand-to-mouth households in Belgium (2024)
Working Paper: Poor and Wealthy Hand-to-mouth Households in Belgium (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:nbb:reswpp:202302-432

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