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Structure and distribution of household wealth: An analysis based on the HFCS

Author

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  • Ph. Du Caju

    (National Bank of Belgium, Research Department)

Abstract

The total financial wealth of households can be deduced from the financial accounts, and their total real wealth can be assessed on the basis of estimates of property ownership and property prices. However, these macroeconomic information sources reveal little about the distribution of wealth among households. That requires microeconomic survey data. The Household Finance and Consumption Survey (HFCS) comprises that type of microeconomic data. The article uses the processed results of the first wave of that survey to analyse the structure and distribution of household wealth. Regarding household assets, we find wide international variations in home ownership. There is a low level of participation in most financial assets (other than deposits), except for the wealthiest households. In regard to debt, the author finds a relatively low percentage of households with debts in the euro area, but once again there are considerable international variations. If all assets and debts are taken into account, the wealth of Belgian households is substantial by international standards. Net wealth seems to be more unevenly distributed than income. Here, too, there are considerable variations between euro area countries. Real assets and mortgage debts play a significant role in this respect. The HFCS is a rich and – certainly for Belgium – reliable statistical source with a great deal of new information on household finances in the broad sense. The microeconomic statistics provided by the HFCS are suitable mainly for structural analyses, but the macroeconomic data are useful for global analyses.

Suggested Citation

  • Ph. Du Caju, 2013. "Structure and distribution of household wealth: An analysis based on the HFCS," Economic Review, National Bank of Belgium, issue ii, pages 41-62, September.
    • Handle: RePEc:nbb:ecrart:y:2013:m:september:i:ii:p:41-62
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    File URL: https://www.nbb.be/en/articles/structure-and-distribution-household-wealth-analysis-based-hfcs-1
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    References listed on IDEAS

    as
    1. Philip Du Caju, 2012. "Asset formation by households during the financial crisis," Economic Review, National Bank of Belgium, issue i, pages 87-100, June.
    2. Eurosystem Household Finance and Consumption Network, 2013. "The Eurosystem Household Finance and Consumption Survey - Methodological report," Statistics Paper Series 1, European Central Bank.
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    Cited by:

    1. Ph. Du Caju, 2016. "The distribution of household wealth in Belgium : initial findings of the second wave of the Household Finance and Consumption Survey (HFCS)," Economic Review, National Bank of Belgium, issue ii, pages 27-43, september.
    2. Ph. Du Caju & Th. Roelandt & Chr. Van Nieuwenhuyze & M.-D. Zachary, 2014. "Household debt: evolution and distribution," Economic Review, National Bank of Belgium, issue ii, pages 61-81, September.
    3. Kontbay-Busun, Sine & Peichl, Andreas, 2014. "Multidimensional affluence in income and wealth in the eurozone: A cross country comparison using the HFCS," ZEW Discussion Papers 14-124, ZEW - Leibniz Centre for European Economic Research.
    4. Kacper Grejcz & Zbigniew Żółkiewski, 2017. "Household wealth in Poland: the results of a new survey of household finance," Bank i Kredyt, Narodowy Bank Polski, vol. 48(3), pages 295-326.
    5. Katarzyna Kochaniak, 2017. "Regulacyjne granice stabilnosci depozytow gospodarstw domowych," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 15(66), pages 37-52.
    6. Philip Du Caju, 2017. "Pockets of risk in the Belgian mortgage market : Evidence from the Household Finance and Consumption Survey (HFCS)," Working Paper Research 332, National Bank of Belgium.
    7. Ph. Du Caju & M. Emiris & Ch. Piette & M.-D. Zachary, 2018. "Shedding new light on the mortgage debt of households in Belgium," Economic Review, National Bank of Belgium, issue i, pages 97-114, June.
    8. Felipe Martínez & Francisca Uribe, 2018. "Determinants of Household Position within Chilean Wealth Household’s Distribution," Working Papers Central Bank of Chile 827, Central Bank of Chile.
    9. Philip Du Caju, 2017. "Pockets of risk in the Belgian mortgage market - Evidence from the Household Finance and Consumption survey," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Data needs and Statistics compilation for macroprudential analysis, volume 46, Bank for International Settlements.
    10. Anna Boldizsár & Zsuzsa Kékesi & Balázs Kóczián & Balázs Sisak, 2016. "The Wealth Position of Hungarian Households based on HFCS," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 15(4), pages 115-150.
    11. V. Baugnet & Ph. Du Caju & M.-D. Zachary, 2017. "Low interest rates and their impact on Belgian households," Economic Review, National Bank of Belgium, issue i, pages 43-59, June.
    12. Katarzyna Kochaniak, 2016. "High value household deposits in the Eurozone: single post-crisis approach vs. national facts," Bank i Kredyt, Narodowy Bank Polski, vol. 47(6), pages 529-552.
    13. B. De Backer & Ph. Du Caju & M. Emiris & Ch. Van Nieuwenhuyze, 2015. "Macroeconomic determinants of non-performing loans," Economic Review, National Bank of Belgium, issue iii, pages 47-65, December.

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    More about this item

    Keywords

    household finance; household survey; wealth;
    All these keywords.

    JEL classification:

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

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