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How did the Greek financial crisis impact on households? A comparison between the two waves of the HFCS

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  • Evangelos Charalambakis

    (Bank of Greece)

Abstract

The paper investigates how the financial crisis impacts on Greek households. To do so, we compare the 2009 and 2014 waves of the Household Finance and Consumption Survey using Greek microdata. We show that median household net wealth declined by 40% during the crisis and this change is statistically significant. The decrease in the value of household net wealth is primarily attributed to the devaluation of real estate assets and secondarily to the lower value of financial assets. Also, there is a decrease in the outstanding balance of household debt and mortgage debt, but this variation is not statistically significant. However, a statistically significant decrease in household non-mortgage debt is observed. Finally, we find that median household income and household food consumption declined by 26% and 27%, respectively. The drop in household income and food consumption is statistically significant across the corresponding distributions.

Suggested Citation

  • Evangelos Charalambakis, 2017. "How did the Greek financial crisis impact on households? A comparison between the two waves of the HFCS," Economic Bulletin, Bank of Greece, issue 45, pages 31-45, July.
  • Handle: RePEc:bog:econbl:y:2017:i:45:p:31-45
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    References listed on IDEAS

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    5. Hiona Balfoussia & Dimitris Papageorgiou, 2018. "Real and financial cycles in the Greek economy," Economic Bulletin, Bank of Greece, issue 47, pages 7-30, July.
    6. Nikolaos Vettas & Alexandros Louka & Konstantinos Peppas & Yakinthi Pountouraki & Michael Vasileiadis, 2022. "Trends in total factor productivity in Greece and its determinants during the period 2005-2019," Economic Bulletin, Bank of Greece, issue 56, pages 7-43, December.
    7. Nikos Ventouris & Georgios Palaiodimos, 2022. "Proposals for the reform of EU fiscal rules," Economic Bulletin, Bank of Greece, issue 55, pages 67-81, July.
    8. Fasianos, Apostolos & Tsoukalis, Panos, 2023. "Decomposing wealth inequalities in the wake of the Greek debt crisis," The Journal of Economic Asymmetries, Elsevier, vol. 28(C).
    9. Artavanis, Nikolaos & Spyridopoulos, Ioannis, 2023. "Determinants of strategic behavior: Evidence from a foreclosure moratorium," Journal of Financial Intermediation, Elsevier, vol. 56(C).
    10. Melina Vasardani & Dimitra Dimitropoulou, 2018. "The utilisation of EU structural funds in Greece," Economic Bulletin, Bank of Greece, issue 47, pages 31-55, July.
    11. Dimitrios Sideris & Georgia Pavlou, 2021. "Disaggregate income and wealth effects on private consumption in Greece," Working Papers 293, Bank of Greece.
    12. Nikos Vettas & Konstantinos Peppas & Sophia Stavraki & Michail Vasileiadis, 2020. "The contribution of Industry to the Greek economy: facts and prospects," Economic Bulletin, Bank of Greece, issue 52, pages 29-67, December.
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    14. Sofia Anyfantaki & Petros Migiakis & Katerina Paisiou, 2022. "Green finance in Europe: actors and challenges," Economic Bulletin, Bank of Greece, issue 55, pages 83-105, July.
    15. Christos Antonopoulos & Sofia Anyfantaki & Theodora Kosma & Evangelia Papapetrou & Filippos Petroulakis & Pavlos Petroulas & Pinelopi Zioutou, 2022. "The Greek Labour market before and after the pandemic: slack tightness and skills mismatch," Economic Bulletin, Bank of Greece, issue 56, pages 45-74, December.
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    18. Christos Catiforis, 2022. "Post-pandemic inflation: Phillips Curve, trends, drivers and lessons," Economic Bulletin, Bank of Greece, issue 55, pages 43-65, July.

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    More about this item

    Keywords

    net wealth; assets; debt; income; consumption;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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