IDEAS home Printed from https://ideas.repec.org/a/gam/jrisks/v9y2021i9p166-d634008.html

Household Financial Situation during the COVID-19 Pandemic with Particular Emphasis on Savings—An Evidence from Poland Compared to Other CEE States

Author

Listed:
  • Grażyna Szustak

    (Department of Banking and Financial Markets, University of Economics in Katowice, 40-287 Katowice, Poland)

  • Witold Gradoń

    (Department of Banking and Financial Markets, University of Economics in Katowice, 40-287 Katowice, Poland)

  • Łukasz Szewczyk

    (Department of Banking and Financial Markets, University of Economics in Katowice, 40-287 Katowice, Poland)

Abstract

The aim of this article is to analyze and assess the impact of the pandemic on the finances of households in Poland, compared to other CEE countries (including Czech Republic, Slovakia and Hungary), with particular emphasis on changes in the level of their savings, which are considered to be the foundation for the development of the indicated research group. There is no doubt that the pandemic had an impact on the situation of households, which is mainly visible in the labor market (rising unemployment), and thus the question arises to what extent have the households’ approaches to financial decisions changed because of this situation? The propensity to save was taken into account as a main aspect of this problem, because it has, among others, a big impact on the financial well-being (in a broader sense). Using the multiple linear regression method, the factors that influence the level of household savings were determined. The results of the research show that these factors are different in the analyzed countries and have a different impact on the level of the explained variable, which is the gross saving rate. The research should also be treated as a preliminary one. It constitutes a contribution to in-depth research with the use of more sophisticated statistical and econometric methods, which will allow for the better assessment of the examined issue.

Suggested Citation

  • Grażyna Szustak & Witold Gradoń & Łukasz Szewczyk, 2021. "Household Financial Situation during the COVID-19 Pandemic with Particular Emphasis on Savings—An Evidence from Poland Compared to Other CEE States," Risks, MDPI, vol. 9(9), pages 1-15, September.
    • Handle: RePEc:gam:jrisks:v:9:y:2021:i:9:p:166-:d:634008
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-9091/9/9/166/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-9091/9/9/166/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ross Levine & Chen Lin & Mingzhu Tai & Wensi Xie, 2021. "How Did Depositors Respond to COVID-19? [A crisis of banks as liquidity providers]," The Review of Financial Studies, Society for Financial Studies, vol. 34(11), pages 5438-5473.
    2. Marek Kośny & Maria Piotrowska, 2013. "Economic security of households and their savings and credits," NBP Working Papers 146, Narodowy Bank Polski.
    3. Kansiime, Monica K. & Tambo, Justice A. & Mugambi, Idah & Bundi, Mary & Kara, Augustine & Owuor, Charles, 2021. "COVID-19 implications on household income and food security in Kenya and Uganda: Findings from a rapid assessment," World Development, Elsevier, vol. 137(C).
    4. Aneta Maria Kłopocka & Tomasz Kopczyński & Grażyna Lenicka-Bajer, 2014. "Financial Situation And Attitudes Towards Saving In Polish Society:Evidence From Micro Data," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 0, pages 476-486, May.
    5. Paul Gerrans & Craig Speelman & Guillermo Campitelli, 2014. "The Relationship Between Personal Financial Wellness and Financial Wellbeing: A Structural Equation Modelling Approach," Journal of Family and Economic Issues, Springer, vol. 35(2), pages 145-160, June.
    6. Daniel Kahneman & Alan B. Krueger, 2006. "Developments in the Measurement of Subjective Well-Being," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 3-24, Winter.
    7. Dolan, Paul & Peasgood, Tessa & White, Mathew, 2008. "Do we really know what makes us happy A review of the economic literature on the factors associated with subjective well-being," Journal of Economic Psychology, Elsevier, vol. 29(1), pages 94-122, February.
    8. Olga Bilyk & Anson T. Y. Ho & Mikael Khan & Geneviève Vallée, 2020. "Household indebtedness risks in the wake of COVID‑19," Staff Analytical Notes 2020-8, Bank of Canada.
    9. Frederic Boissay & Daniel Rees & Phurichai Rungcharoenkitkul, 2020. "Dealing with Covid-19: understanding the policy choices," BIS Bulletins 19, Bank for International Settlements.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shari De Baets & Dilek Önkal & Wasim Ahmed, 2022. "Do Risky Scenarios Affect Forecasts of Savings and Expenses?," Forecasting, MDPI, vol. 4(1), pages 1-28, February.
    2. Paweł Merło & Jacek Michalak & Katarzyna Andruszkiewicz, 2024. "Model of Family and the Propensity to Build Sustainable Savings Attitudes in the Post-COVID World: A Case Study of Poland," Sustainability, MDPI, vol. 16(8), pages 1-18, April.
    3. Chatterjee, Oindrila & Gopalakrishnan, Balagopal & Mohapatra, Sanket, 2024. "Gold in household portfolios during a pandemic: Evidence from India," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 1288-1306.
    4. Andrzej Woloszyn & Romana Glowicka-Woloszyn, 2024. "Savings Rate and Its Determinants in Households in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 1212-1230.
    5. Elena Moreno-García & Sergio Hernández-Mejía & Héctor Francisco Salazar Núñez, 2024. "Financial Literacy and Financial Fragility in Mexico," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 19(1), pages 1-21, Enero - M.
    6. Romana Glowicka-Woloszyn & Andrzej Woloszyn & Joanna Stanislawska, 2024. "Relative Assessment of the Financial Situation of Households in Small Towns in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 1022-1038.
    7. Belbe, Ștefana & Moldovan, Darie & Andrieș, Alin Marius & Otto, Philipp & Mare, Codruța, 2024. "Evaluation of the space-time effects of Covid-19 on household loans and savings in Romania - A spatial panel data approach at county level," Emerging Markets Review, Elsevier, vol. 63(C).
    8. Pattaphol Yuktadatta & Shunsuke Ono & Mostafa Saidur Rahim Khan & Yoshihiko Kadoya, 2022. "Satisfaction with the COVID-19 Economic Stimulus Policy: A Study of the Special Cash Payment Policy for Residents of Japan," Sustainability, MDPI, vol. 14(6), pages 1-15, March.
    9. André Berchtold, 2022. "Relationship between the COVID-19 Pandemic and the Well-Being of Adolescents and Their Parents in Switzerland," IJERPH, MDPI, vol. 19(11), pages 1-9, June.
    10. Romana Głowicka-Wołoszyn & Andrzej Wołoszyn & Joanna Stanisławska & Amílcar Oliveira & Teresa Oliveira, 2024. "Impact of the COVID-19 Pandemic on the Financial Situation of Rural and Urban Households in Poland," Sustainability, MDPI, vol. 16(19), pages 1-25, September.
    11. Calcedonia Enache, "undated". "Financial Stability of Romanian Households in Light of the COVID-19 Pandemic Shocks," BASIQ Conference Proceedings 2023:056, Bucharest University of Economic Studies.
    12. Oindrila Chatterjee & Balagopal Gopalakrishnan & Sanket Mohapatra, 2023. "Gold in household portfolios during a pandemic: Evidence from an emerging economy," IIMA Working Papers WP 2023-06-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    13. Kazandziska, Milka, 2022. "Financialization in emerging Europe," IPE Working Papers 183/2022, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    14. Arindam Das & Himadri Roy Chaudhuri, 2022. "Pandemics and consumer well‐being from the Global South," Journal of Consumer Affairs, Wiley Blackwell, vol. 56(1), pages 15-27, March.
    15. Tímea Vastag & Boglárka Eisinger-Balassa, 2024. "Systematic Literature Review on Overspending and Sustainable Budgeting: Insights for Hungarian Households," Sustainability, MDPI, vol. 16(21), pages 1-21, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bruno S. Frey & Anthony Gullo, 2021. "Does Sports Make People Happier, or Do Happy People More Sports?," Journal of Sports Economics, , vol. 22(4), pages 432-458, May.
    2. Paul Downward & Simona Rasciute, 2011. "An Economic Analysis of the Subjective Health and Well-being of Physical Activity," Chapters, in: Plácido Rodríguez & Stefan Késenne & Brad R. Humphreys (ed.), The Economics of Sport, Health and Happiness, chapter 2, Edward Elgar Publishing.
    3. Hajdu, Tamás & Hajdu, Gábor, 2011. "A hasznosság és a relatív jövedelem kapcsolatának vizsgálata magyar adatok segítségével [Examining the relation of utility and relative income using Hungarian data]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 56-73.
    4. Tomas Hanell, 2022. "Unmet Aspirations and Urban Malaise," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(1), pages 83-103, November.
    5. Eric Morris & Erick Guerra, 2015. "Mood and mode: does how we travel affect how we feel?," Transportation, Springer, vol. 42(1), pages 25-43, January.
    6. Juan Wang & Yongbo Li, 2024. "Do subjective well-being influence people’s willingness to pay for improved air quality: evidence from China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(3), pages 7857-7879, March.
    7. Paul Hudson & W. J. Wouter Botzen & Jennifer Poussin & Jeroen C. J. H. Aerts, 2019. "Impacts of Flooding and Flood Preparedness on Subjective Well-Being: A Monetisation of the Tangible and Intangible Impacts," Journal of Happiness Studies, Springer, vol. 20(2), pages 665-682, February.
    8. Welsch, Heinz & Kühling, Jan, 2015. "Income comparison, income formation, and subjective well-being: New evidence on envy versus signaling," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 59(C), pages 21-31.
    9. Marcus Dittrich & Bianka Mey, 2015. "Are people satisfied with their time use? Empirical evidence from German survey data," Economics Bulletin, AccessEcon, vol. 35(4), pages 2903-2914.
    10. Christopher Mackie & Conal Smith, 2015. "Conceptualizing Subjective Well-Being And Its Many Dimensions – Implications For Data Collection In Official Statistics And For Policy Relevance," Statistics in Transition New Series, Polish Statistical Association, vol. 16(3), pages 335-372, September.
    11. Papageorgiou, Athanasios, 2018. "The Effect of Immigration on the Well-Being of Native Populations: Evidence from the United Kingdom," MPRA Paper 93045, University Library of Munich, Germany.
    12. Flores, Gabriela & Ingenhaag, Michael & Maurer, Jürgen, 2015. "An anatomy of old-age disability: Time use, affect and experienced utility," Journal of Health Economics, Elsevier, vol. 44(C), pages 150-160.
    13. Dickerson, Andy & Hole, Arne Risa & Munford, Luke A., 2014. "The relationship between well-being and commuting revisited: Does the choice of methodology matter?," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 321-329.
    14. Peng Wang & Jay Pan & Zhehui Luo, 2015. "The Impact of Income Inequality on Individual Happiness: Evidence from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 121(2), pages 413-435, April.
    15. Fulvio Castellacci & Henrik Schwabe, 2020. "Internet, unmet aspirations and the U-shape of life," PLOS ONE, Public Library of Science, vol. 15(6), pages 1-22, June.
    16. Rubén Arrondo & Ana Cárcaba & Eduardo González, 2021. "Drivers of Subjective Well-being in Spain: Are There Gender Differences?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 16(5), pages 2131-2154, October.
    17. Chen, Le-Yu & Oparina, Ekaterina & Powdthavee, Nattavudh & Srisuma, Sorawoot, 2022. "Robust Ranking of Happiness Outcomes: A Median Regression Perspective," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 672-686.
    18. Bruno S. Frey, 2011. "Subjective Well-Being, Politics and Political Economy," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 147(4), pages 397-415, December.
    19. Iddisah Sulemana, 2016. "Are Happier People More Willing to Make Income Sacrifices to Protect the Environment?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 447-467, May.
    20. Matthew D Rablen, 2012. "The promotion of local wellbeing: A primer for policymakers," Local Economy, London South Bank University, vol. 27(3), pages 297-314, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jrisks:v:9:y:2021:i:9:p:166-:d:634008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.