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Poor and wealthy hand-to-mouth households in Belgium

par Cherchye, Laurens;Demuynck, Thomas ;De Rock, Bram ;Kovaleva, Mariia ;Minne, Geoffrey ;Perea, Maite De Sola;Vermeulen, Frederic
Référence Review of Economics of the Household, 22, page (909-934)
Publication Publié, 2023-12-01

Article révisé par les pairs

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Résumé :

We identify the population shares of poor hand-to-mouth households, wealthy hand-to-mouth households and non hand-to-mouth households in Belgium. We apply the methodology proposed by Kaplan & Violante (2014) and Kaplan et al., (2014) to the Belgian component of the Household Finance and Consumption Survey. We find that the fraction of hand-to-mouth households in Belgium is substantial and predominantly consists of wealthy hand-to-mouth households. We also compare the observable characteristics and marginal propensities to consume (MPCs) of the three household types. Belgian wealthy hand-to-mouth households have characteristics that resemble those of the non hand-to-mouth households, while their MPCs are often more similar to those of the poor hand-to-mouth households. This pleads for giving a unique place to each type of household when evaluating the effects of fiscal policy.