Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298306 
Year of Publication: 
2023
Series/Report no.: 
NBB Working Paper No. 432
Publisher: 
National Bank of Belgium, Brussels
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.
Subjects: 
savings
hand-to-mouth households
liquidity
marginal propensity to consume (MPC)
JEL: 
D12
D15
E2
Document Type: 
Working Paper

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