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How Do Households Allocate Their Assets? Stylized Facts from the Eurosystem Household Finance and Consumption Survey

Author

Listed:
  • Luc Arrondel

    (PSE - Paris-Jourdan Sciences Economiques - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - EHESS - École des hautes études en sciences sociales - INRA - Institut National de la Recherche Agronomique - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Laura Bartiloro

    (Banca d'Italia - Banca d'Italia)

  • Pirmin Fessler

    (Oesterreichische Nationalbank)

  • Peter Lindner

    (Banca d'Italia - Banca d'Italia)

  • Thomas Y. Mathä

    (Banque centrale du Luxembourg - Banque centrale du Luxembourg)

  • Cristiana Rampazzi

    (Banca d'Italia - Banca d'Italia)

  • Frédérique Savignac

    (Banque de france - Banque de France)

  • Tobias Schmidt

    (Institut für Mathematik [Berlin] - TU - Technische Universität Berlin)

  • Martin Schurz

    (Oesterreichische Nationalbank)

  • Philip Vermeulen

    (ECB - European Central Bank - European Central Bank)

Abstract

Using the first wave of the Eurosystem Household Finance and Consumption Survey (HFCS), a large micro-level data set on households' balance sheets in fifteen euro-area countries, this paper explores how households allocate their assets. We derive stylized facts on asset participation as well as the portfolio shares 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 signif- icant 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 homeownership and holding of other real estate is remarkable. We tentatively link differences in asset holding patterns across countries to differences in institutions.

Suggested Citation

  • Luc Arrondel & Laura Bartiloro & Pirmin Fessler & Peter Lindner & Thomas Y. Mathä & Cristiana Rampazzi & Frédérique Savignac & Tobias Schmidt & Martin Schurz & Philip Vermeulen, 2016. "How Do Households Allocate Their Assets? Stylized Facts from the Eurosystem Household Finance and Consumption Survey," PSE - Labex "OSE-Ouvrir la Science Economique" halshs-01379262, HAL.
  • Handle: RePEc:hal:pseose:halshs-01379262
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01379262
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    as
    1. Julia Le Blanc & Alessandro Porpiglia & Federica Teppa & Junyi Zhu & Michael Ziegelmeyer, 2014. "Household saving behaviour and credit constraints in the Euro area," DNB Working Papers 428, Netherlands Central Bank, Research Department.
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    More about this item

    Keywords

    Household; Distribution;

    JEL classification:

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

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