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Effects of COVID-19 on income, consumption and savings: Evidence from the Luxembourg Household Finance and Consumption Survey

Author

Listed:
  • Thomas Y. Mathä

  • Ana Montes-Vinas

  • Giuseppe Pulina

  • Michael Ziegelmeyer

Abstract

We examine the impact of the COVID-19 pandemic on household income, consumption and savings in Luxembourg, revealing substantial heterogeneity across income and wealth distributions. More specifically, poorer households were more likely to experience negative effects than households with higher income or wealth. In particular, poorer households were more likely to report a decline in income and in savings.

Suggested Citation

  • Thomas Y. Mathä & Ana Montes-Vinas & Giuseppe Pulina & Michael Ziegelmeyer, 2023. "Effects of COVID-19 on income, consumption and savings: Evidence from the Luxembourg Household Finance and Consumption Survey," BCL Bulletin Analyses, Central Bank of Luxembourg, vol. 2023, pages 50-59.
    • Handle: RePEc:bcl:bclban:bclanalyse20232a3
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    References listed on IDEAS

    as
    1. Scott R Baker & Robert A Farrokhnia & Steffen Meyer & Michaela Pagel & Constantine Yannelis & Jeffrey Pontiff, 0. "How Does Household Spending Respond to an Epidemic? Consumption during the 2020 COVID-19 Pandemic," The Review of Asset Pricing Studies, Society for Financial Studies, vol. 10(4), pages 834-862.
    2. Crossley, Thomas F. & Fisher, Paul & Low, Hamish, 2021. "The heterogeneous and regressive consequences of COVID-19: Evidence from high quality panel data," Journal of Public Economics, Elsevier, vol. 193(C).
    3. Adams-Prassl, Abi & Boneva, Teodora & Golin, Marta & Rauh, Christopher, 2020. "Inequality in the impact of the coronavirus shock: Evidence from real time surveys," Journal of Public Economics, Elsevier, vol. 189(C).
    4. Landais, Camille & Bounie, David & Camara, Youssouf & Fize, Etienne & Galbraith, John W. & Lavest, Chloe & Pazem, Tatiana & Savatier, Baptiste, 2020. "Consumption Dynamics in the COVID Crisis: Real Time Insights from French Transaction & Bank Data," CEPR Discussion Papers 15474, C.E.P.R. Discussion Papers.
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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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