Household Saving Behaviour and Credit Constraints in the Euro Area

31 Pages Posted: 7 Mar 2015

See all articles by Federica Teppa

Federica Teppa

De Nederlandsche Bank

Alessandro Porpiglia

Banque Centrale du Luxembourg

Michael Ziegelmeyer

Banque centrale du Luxembourg; Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Social Law and Social Policy

Julia Le Blanc

Joint Research Centre, Italy

Junyi Zhu

Deutsche Bundesbank

Multiple version iconThere are 3 versions of this paper

Date Written: February 19, 2014

Abstract

We study the role of household saving behaviour, of individual motives for saving and that of perceived liquidity constraints on household finances in 15 Euro Area countries. The empirical analysis is based on the Household Finance and Consumption Survey, a new harmonized data set collecting detailed information on wealth holdings, consumption and income at the household level. We find evidence of some degree of homogeneity across countries with respect to saving preferences and the relative importance of different motives for saving. In addition, we find a more heterogeneous impact of credit constraints on household finances, that are perceived to be binding for specific groups of respondents and geographic regions. Household characteristics and institutional macroeconomic variables are significant and economically important determinants of household saving preferences and credit constraints.

Keywords: Household finance and consumption, life cycle saving, survey data

JEL Classification: C8, D12, D14, D91

Suggested Citation

Teppa, Federica and Porpiglia, Alessandro and Ziegelmeyer, Michael Heinrich and Le Blanc, Julia and Zhu, Junyi, Household Saving Behaviour and Credit Constraints in the Euro Area (February 19, 2014). Netspar Discussion Paper No. 02/2014-081, Available at SSRN: https://ssrn.com/abstract=2574310 or http://dx.doi.org/10.2139/ssrn.2574310

Federica Teppa (Contact Author)

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

Alessandro Porpiglia

Banque Centrale du Luxembourg ( email )

2, boulevard Royal
Luxembourg, L-2983
Luxembourg

Michael Heinrich Ziegelmeyer

Banque centrale du Luxembourg ( email )

2, boulevard Royal
Luxembourg, L-2983
Luxembourg

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Social Law and Social Policy ( email )

Amalienstra├če 33
M├╝nchen, 80799
Germany

Julia Le Blanc

Joint Research Centre, Italy ( email )

Via E. Fermi 1
I-21020 Ispra (VA)
United States

Junyi Zhu

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

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