IDEAS home Printed from https://ideas.repec.org/p/bis/bisiwp/6.html
   My bibliography  Save this paper

Household Response to the Economic Crisis Micro-simulation for the Czech Economy

Author

Listed:
  • Petr Jakubík

Abstract

This paper studies the economic impact of the current global economic downturn on the household sector. Household budgets can be negatively affected by declines in nominal wages and increases in unemployment. We empirically test this effect for the Czech economy. As a result of the lack of individual data on the Czech household finances, micro data are simulated. Our analysis clearly points out that there is a significant additional decline in consumption related to an increase in household default rates. We find that potential household insolvencies have important implications for the financial system as well as for the aggregate economy.

Suggested Citation

  • Petr Jakubík, 2010. "Household Response to the Economic Crisis Micro-simulation for the Czech Economy," IFC Working Papers 6, Bank for International Settlements.
    • Handle: RePEc:bis:bisiwp:6
    as

    Download full text from publisher

    File URL: https://www.bis.org/ifc/publ/ifcwork06.pdf
    File Function: Full PDF document
    Download Restriction: no
    File URL: https://www.bis.org/ifc/publ/ifcwork06.htm
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Merxe Tudela & Garry Young, 2005. "The determinants of household debt and balance sheets in the United Kingdom," Bank of England working papers 266, Bank of England.
    2. Barrell, Ray & Davis, E. Philip & Pomerantz, Olga, 2006. "Costs of financial instability, household-sector balance sheets and consumption," Journal of Financial Stability, Elsevier, vol. 2(2), pages 194-216, June.
    3. Frank Barry & John Bradley & Michal Kejak & David Vavra, 2000. "The Czech Economic Transition: Exploring Options Using a Macrosectoral Model," CERGE-EI Working Papers wp158, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    Full references (including those not matched with items on IDEAS)

    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. Petr Jakubík, 2011. "Household Balance Sheets and Economic Crisis," Working Papers IES 2011/20, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Jun 2011.
    2. repec:zbw:bofitp:2011_007 is not listed on IDEAS
    3. Christopher Kent & Crystal Ossolinski & Luke Willard, 2007. "The Rise of Household Indebtedness," RBA Annual Conference Volume (Discontinued), in: Christopher Kent & Jeremy Lawson (ed.),The Structure and Resilience of the Financial System, Reserve Bank of Australia.
    4. Jakubik, Petr, 2011. "Households response to economic crisis," BOFIT Discussion Papers 7/2011, Bank of Finland, Institute for Economies in Transition.
    5. Jakubik, Petr, 2011. "Households response to economic crisis," BOFIT Discussion Papers 7/2011, Bank of Finland Institute for Emerging Economies (BOFIT).
    6. Q. Akram & Gunnar Bårdsen & Kjersti-Gro Lindquist, 2007. "Pursuing financial stability under an inflation-targeting regime," Annals of Finance, Springer, vol. 3(1), pages 131-153, January.
    7. Ray Barrell & Martin Weale, 2009. "The Economics of a Reduction in VAT," Fiscal Studies, John Wiley & Sons, vol. 30(1), pages 17-30, March.
    8. repec:hal:spmain:info:hdl:2441/5l6uh8ogmqildh09h560mit97 is not listed on IDEAS
    9. Michal Kejak & David Vavra, 2004. "Factor Accumulation Story: Any Unfinished Business?," CERGE-EI Working Papers wp220, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    10. Douglas Sutherland & Peter Hoeller, 2012. "Debt and Macroeconomic Stability: An Overview of the Literature and Some Empirics," OECD Economics Department Working Papers 1006, OECD Publishing.
    11. Marek Radvanský, . "Impact of Cohesion Policy on Regional Development of Slovakia," Books, Institute of Economic Research, SAS, edition 1, number eb01, December.
    12. Tabak, Benjamin M. & Luduvice, André Victor D. & Cajueiro, Daniel O., 2011. "Modeling default probabilities: The case of Brazil," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 21(4), pages 513-534, October.
    13. Merike Kukk, 2014. "Distinguishing the components of household financial wealth: the impact of liabilities on assets in Euro Area countries," Bank of Estonia Working Papers wp2014-2, Bank of Estonia, revised 10 Oct 2014.
    14. Meng, Xianming & Hoang, Nam T. & Siriwardana, Mahinda, 2013. "The determinants of Australian household debt: A macro level study," Journal of Asian Economics, Elsevier, vol. 29(C), pages 80-90.
    15. Anelisa Nomatye & Andrew Phiri, 2018. "Investigating the Macroeconomic Determinants of Hosehold Debt in South Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 62-69.
    16. Oriol Carreras & Iana Liadze & Simon Kirby & Rebecca Piggott, 2016. "Quantifying Fiscal Multipliers," National Institute of Economic and Social Research (NIESR) Discussion Papers 469, National Institute of Economic and Social Research.
    17. Efstathios Polyzos & Aristeidis Samitas & Ghulame Rubbaniy, 2024. "The perfect bail‐in: Financing without banks using peer‐to‐peer lending," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 3393-3412, July.
    18. repec:ptu:bdpart:r200701 is not listed on IDEAS
    19. Whitaker, Stephan D., 2018. "Big Data versus a survey," The Quarterly Review of Economics and Finance, Elsevier, vol. 67(C), pages 285-296.
    20. KORKMAZ, Özge, 2017. "Is Minsky’S Instability Hypothesis Acceptable For The Relation Between Borrowing Rate And Profitability?," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 21(1), pages 6-27.
    21. Thomas Hintermaier & Winfried Koeniger, 2016. "Debt Portfolios and Homestead Exemptions," American Economic Journal: Macroeconomics, American Economic Association, vol. 8(4), pages 103-141, October.
    22. repec:zbw:bofrdp:2007_005 is not listed on IDEAS
    23. Christophe Blot & Sabine Le Bayon & Matthieu Lemoine & Sandrine Levasseur, 2009. "De la crise financière à la crise économique," SciencePo Working papers Main hal-03476072, HAL.
    24. Richard Blundell, 2009. "Assessing the Temporary VAT Cut Policy in the UK," Fiscal Studies, Institute for Fiscal Studies, vol. 30(1), pages 31-38, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

    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:bis:bisiwp:6. 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: Martin Fessler (email available below). General contact details of provider: https://edirc.repec.org/data/bisssch.html .

    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.