TY  - UNPD
A1  - Hintermaier, Thomas
A1  - Koeniger, Winfried
T1  - Differences in euro-area household finances and their relevance for monetary-policy transmission
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 637
N2  - This paper quantifies the extent of heterogeneity in consumption responses to changes in real interest rates and house prices in the four largest economies in the euro area: France, Germany, Italy, and Spain. We first calibrate a life-cycle incomplete-markets model with a financial asset and housing to match the large heterogeneity of households asset portfolios, observed in the Household Finance and Consumption Survey (HFCS) for these countries. We then show that the heterogeneity in household finances implies that responses of consumption to changes in the real interest rate and in house prices differ substantially across countries, and within countries by household characteristics such as age, housing tenure, and asset positions. The different consumption responses quantified in this paper point towards important heterogeneity in monetary-policy transmission in the euro area.
T3  - CFS working paper series - 637 
KW  - European household portfolios
KW  - consumption
KW  - monetary policy transmission
KW  - international comparative finance
KW  - housing
Y1  - 2019
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/51815
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-518158
UR  - https://ssrn.com/abstract=3496302
IS  - November 1, 2019
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -