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Financial behaviour of Dutch households: analysis of the DNB Household Survey 2003

In: Investigating the relationship between the financial and real economy

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  • P J A van Els

    (Netherlands Bank)

  • W A van den End

    (Netherlands Bank)

  • M C J van Rooij

    (Netherlands Bank)

Abstract

This paper presents an analysis of the financial behaviour of Dutch households on the basis of the DNB Household Survey. The results of this survey provide insight into the backgrounds and consequences of the persistent rise of household debt. The increase in mortgage debt is related to mortgage equity withdrawal. The financial vulnerability of households turns out to have increased, especially the sensitivity to interest rate movements. This contribution also looks into investors' response to the creeping crash on stock markets since 2000. While the majority have largely held on to their portfolios, they have become more cautious. One of the main themes of the survey is Dutch households' attitude towards pensions. The survey reveals that in a great many cases the individual's insight into his or her pension arrangement is deficient, to say the least. Regarding every retrenchment of the current schemes for the 65-plus as an infringement on acquired rights, the majority of the Dutch public is opposed to such measures. They would rather pay a higher premium in order to be able to enjoy the present level of pension benefits.
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Suggested Citation

  • P J A van Els & W A van den End & M C J van Rooij, 2005. "Financial behaviour of Dutch households: analysis of the DNB Household Survey 2003," BIS Papers chapters,in: Bank for International Settlements (ed.), Investigating the relationship between the financial and real economy, volume 22, pages 21-39 Bank for International Settlements.
  • Handle: RePEc:bis:bisbpc:22-03
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    References listed on IDEAS

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    1. Meen, Geoffrey P, 1990. "The Removal of Mortgage Market Constraints and the Implications for Econometric Modelling of UK House Prices," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(1), pages 1-23, February.
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    7. Luci Ellis & Dan Andrews, 2001. "City Sizes, Housing Costs, and Wealth," RBA Research Discussion Papers rdp2001-08, Reserve Bank of Australia.
    8. Jeremy C. Stein, 1995. "Prices and Trading Volume in the Housing Market: A Model with Down-Payment Effects," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 379-406.
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    Citations

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    Cited by:

    1. de Haas, Ralph & van Lelyveld, Iman, 2010. "Internal capital markets and lending by multinational bank subsidiaries," Journal of Financial Intermediation, Elsevier, pages 1-25.
    2. Nataliya Barasinska & Dorothea Schäfer, 2013. "Financial risk taking, gender and social identity - Evidence from national surveys of household finance," LWS Working papers 15, LIS Cross-National Data Center in Luxembourg.
    3. Barasinska, Nataliya & Schäfer, Dorothea, 2013. "Is the willingness to take financial risk a sex-linked trait? Evidence from national surveys of household finance," Discussion Papers 05/2013, Deutsche Bundesbank.
    4. Henriëtte Prast & Iman van Lelyveld, 2004. "New Architectures in the Regulation and Supervision of Financial Markets and Institutions: The Netherlands," DNB Working Papers 021, Netherlands Central Bank, Research Department.
    5. James B. Davies & Susanna Sandström & Anthony Shorrocks & Edward N. Wolff, 2011. "The Level and Distribution of Global Household Wealth," Economic Journal, Royal Economic Society, vol. 121(551), pages 223-254, March.
    6. Lennard van Gelder & Ad Stokman, 2006. "Regime transplants in GDP growth forecasting: A recipe for better predictions?," DNB Working Papers 106, Netherlands Central Bank, Research Department.
    7. Guy Debelle, 2004. "Macroeconomic implications of rising household debt," BIS Working Papers 153, Bank for International Settlements.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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