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On Italian Families’ Inability to Meet Expected Expenses: A Possible Measure and Its Determinants

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  • Francesca Condino

    (University of Calabria)

  • Filippo Domma

    (University of Calabria)

Abstract

An important economic and social issue that has emerged in recent years in the Italian political debate is the difficulty many families face in making ends meet. In this work, we aim to measure Italian households’ inability to cover their expected annual expenses with their disposable income by analysing the probability that these expenses exceed household disposable income. To account for the dependence between income and expenses, we specify the joint distribution using a copula approach. Utilizing data from the Survey on Household Income and Wealth (SHIW) conducted by the Bank of Italy, we introduce regression models to identify the socio-demographic and economic determinants that influence this measure. Our methodology also enables us to identify subgroups within the population that experience varying degrees of difficulty in meeting their expected expenses with disposable income.

Suggested Citation

  • Francesca Condino & Filippo Domma, 2025. "On Italian Families’ Inability to Meet Expected Expenses: A Possible Measure and Its Determinants," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(2), pages 745-772, July.
    • Handle: RePEc:spr:italej:v:11:y:2025:i:2:d:10.1007_s40797-025-00331-8
    DOI: 10.1007/s40797-025-00331-8
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    1. Giorgio Calcagnini & Riccardo Bonis & Germana Giombini, 2025. "Financial Literacy and Education in an Era of Unprecedented Disruptions," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(2), pages 459-462, July.

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    Keywords

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    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

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