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Household Wealth and Finances. Results for Households in Lithuania for 2017

Author

Listed:
  • Karolis Bielskis

    (Bank of Lithuania, Vilnius University)

  • Andrius Ciginas

    (Vilnius University)

Abstract

This paper reports new data on the household balance sheet and the consumption situation in Lithuania. It uses a unique Household Finance and Consumption Survey (HFCS) dataset, which collects detailed information about different asset classes and outlines the composition of the household balance sheet in Lithuania. At 93.2%, the homeownership rate in Lithuania is the highest in Europe. Real assets correspond to the highest share of households’ wealth and generate a median net wealth of 46 000 €. Lithuanian households participate poorly in financial assets, with only deposits and individual insurance/pensions generating more significant aggregate values. Household participation in debt markets is also limited in Lithuania, with only 11.7% of households having some mortgage-based liabilities. Lithuanian households spend a significant share of their income on food and utilities. This share is among the highest in Europe. A large number of Lithuanian households can be characterized as "hand-to-mouth" households, as they own a significant amount of wealth in illiquid real estate and very little wealth in liquid financial assets.

Suggested Citation

  • Karolis Bielskis & Andrius Ciginas, 2020. "Household Wealth and Finances. Results for Households in Lithuania for 2017," Bank of Lithuania Discussion Paper Series 19, Bank of Lithuania.
    • Handle: RePEc:lie:dpaper:19
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    household balance sheet; net wealth; household survey; HFCS;
    All these keywords.

    JEL classification:

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

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