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How do households allocate their assets? Stylised facts from the Eurosystem Household Finance and Consumption Survey

Author

Listed:
  • Luc Arrondel

    ()

  • Laura Bartiloro

    ()

  • Pirmin Fessler

    ()

  • Peter Lindner

    ()

  • Thomas Y. Mathä

    ()

  • Cristiana Rampazzi

    ()

  • Frederique Savignac

    ()

  • Tobias Schmidt

    ()

  • Martin Schürz

    ()

  • Philip Vermeulen

    ()

Abstract

Using the first wave of the Eurosystem Household Finance and Consumption Survey (HFCS), a large micro-level dataset on households? balance sheets in 15 euro area countries, this paper explores how households allocate their assets. We derive stylised facts on asset participation as well as levels of asset holdings and investigate the systematic relationships between household characteristics and asset holding patterns. Real assets make up the bulk of total assets. Whereas ownership of the main residence varies strongly between countries, the value of the main residence tends to be the major asset for homeowners and represents a significant part of total assets in all countries. While almost all households hold safe financial assets, a low share of households holds risky assets. The ownership rates of all asset categories generally increase with wealth (and income). The significance of inheritances for home ownership and holding of other real estate is remarkable. We tentatively link differences in asset holding patterns across countries to differences in institutions, such as mortgage market institutions and house price-to-rent ratios.

Suggested Citation

  • Luc Arrondel & Laura Bartiloro & Pirmin Fessler & Peter Lindner & Thomas Y. Mathä & Cristiana Rampazzi & Frederique Savignac & Tobias Schmidt & Martin Schürz & Philip Vermeulen, 2014. "How do households allocate their assets? Stylised facts from the Eurosystem Household Finance and Consumption Survey," BCL working papers 94, Central Bank of Luxembourg.
  • Handle: RePEc:bcl:bclwop:bclwp094
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    References listed on IDEAS

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    Cited by:

    1. Julia Le Blanc & Alessandro Porpiglia & Federica Teppa & Junyi Zhu & Michael Ziegelmeyer, 2014. "Household saving behaviour and credit constraints in the euro area," BCL working papers 93, Central Bank of Luxembourg.
    2. Korom, Philipp, 2017. "Ungleiche Mittelschichten: Über Unterschiede im Immobilienvermögen und im Erbe innerhalb der Mitte Deutschlands," MPIfG Discussion Paper 17/14, Max Planck Institute for the Study of Societies.
    3. L. Arrondel & P. Lamarche & F. Savignac, 2015. "Wealth Effects on Consumption across the Wealth Distribution: Empirical Evidence," Working papers 552, Banque de France.
    4. Eva Sierminska & Karina Doorley, 2018. "To own or not to own? Household portfolios, demographics and institutions in a cross-national perspective," Journal of Income Distribution, Journal of Income Distribution, vol. 25(1), pages 1-43, March.
    5. Mario Holzner & Stefan Jestl, 2015. "Of proprietors and proletarians," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 141, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    6. Muellbauer, John, 2016. "Macroeconomics and Consumption," CEPR Discussion Papers 11588, C.E.P.R. Discussion Papers.
    7. Olympia Bover & Jose Maria Casado & Sonia Costa & Philip Du Caju & Yvonne McCarthy & Eva Sierminska & Panagiota Tzamourani & Ernesto Villanueva & Tibor Zavadil, 2016. "The Distribution of Debt across Euro-Area Countries: The Role of Individual Characteristics, Institutions, and Credit Conditions," International Journal of Central Banking, International Journal of Central Banking, vol. 12(2), pages 71-128, June.
    8. Katarzyna Kochaniak, 2016. "Low interest rates - do they revise household saving motives in the Euro area?," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 12(1), pages 43-56, June.
    9. repec:nbp:nbpbik:v:48:y:2017:i:2:p:197-234 is not listed on IDEAS
    10. Stefan Humer & Mathias Moser & Matthias Schnetzer, 2015. "Socioeconomic structures of the Austrian wealth distribution," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(2), pages 269-289, May.
    11. 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.
    12. Beckmann, Elisabeth & Mare, Davide Salvatore, 2017. "Formal and informal household savings: how does trust in financial institutions influence the choice of saving instruments?," MPRA Paper 81141, University Library of Munich, Germany.
    13. repec:nbp:nbpbik:v:48:y:2017:i:3:p:295-326 is not listed on IDEAS
    14. repec:onb:oenbmp:y:2017:i:q2/17:b:2 is not listed on IDEAS
    15. Michal Rubaszek, 2017. "Reforming housing rental market in a life-cycle model," Working Papers 2017-028, Warsaw School of Economics, Collegium of Economic Analysis.
    16. Merike Kukk, 2014. "Distinguishing the Components of Household Financial Wealth: the Impact of Liabilities on Assets in Euro Area Countries," Proceedings of International Academic Conferences 0100418, International Institute of Social and Economic Sciences.
    17. SIERMINSKA Eva & SILBER Jacques, 2016. "On the diversity of assets holdings in the United States in 2007 and 2009," LISER Working Paper Series 2016-08, LISER.
    18. Luc Arrondel & Pierre Lamarche & Frédérique Savignac, 2017. "Does Inequality Matter for the Consumption-Wealth Channel? Empirical Evidence," CESifo Working Paper Series 6676, CESifo Group Munich.
    19. Luc Arrondel & Pierre Lamarche & Frédérique Savignac, 2015. "Wealth Effects on Consumption across the Wealth Distribution: Empirical Evidence," Working Papers halshs-01168660, HAL.
    20. Anastasia Girshina & Thomas Y. Mathä & Michael Ziegelmeyer, 2017. "The Luxembourg Household Finance and Consumption Survey: Results from the 2nd wave," BCL working papers 106, Central Bank of Luxembourg.
    21. repec:bfr:rueban:2017:42 is not listed on IDEAS
    22. Stefan Jestl & Mario Holzner & Sebastian Leitner, 2015. "Immobilienvermögen und Hypothekarverschuldung der Haushalte im Europavergleich," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 41(1), pages 49-70.
    23. Saving and Investment Task Force & Rodriguez-Palenzuela, Diego & Dées, Stéphane & Andersson, Malin & Bijsterbosch, Martin & Forster, Katrin & Zorell, Nico & Audoly, Richard & Buelens, Christian & Comp, 2016. "Savings and investment behaviour in the euro area," Occasional Paper Series 167, European Central Bank.
    24. Michael Ziegelmeyer, 2015. "Other real estate property in selected euro area countries," BCL working papers 99, Central Bank of Luxembourg.
    25. Ugo Panizza, 2015. "Billions on the Sidewalk: Improving Savings by Reducing Investment Mistakes," IHEID Working Papers 18-2015, Economics Section, The Graduate Institute of International Studies.

    More about this item

    Keywords

    Household financial decisions; individual portfolio choice; real and financial assets; cross-country comparisons;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D3 - Microeconomics - - Distribution

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