DETERMINANTS OF HOUSEHOLD FINANCIAL VULNERABILITY: EVIDENCE FROM SELECTED EU COUNTRIES

186 2021, XXIV, 3 Finance 10.15240/ ul/001/2021-3-011 DETERMINANTS OF HOUSEHOLD FINANCIAL VULNERABILITY: EVIDENCE FROM SELECTED EU COUNTRIES Nikola Šubo á1, Ladisla Mu a2, Ján Buleca3 1 Technical Uni e si y o Košice, Facul y o Economics, Depa men o Finance, Slo akia, ORCID: 0000-0003-0158-2332, [email p o ec ed]; 2 Pan-Eu opean Uni e si y, Facul y o Economics and Business, Depa men o In e na ional En ep eneu ship, Slo akia, ORCID: 0000-0002-2453-8740, ladisla [email p o ec ed]; 3 Technical Uni e si y o Košice, Facul y o Economics, Depa men o Finance, Slo akia, ORCID: 0000-0002-6613-2167, [email p o ec ed] (co esponding au ho ). Abs ac : Household deb has been inc easing in he las decades, and i poses a h ea no only o he inancial s abili y o households bu is a p ecu so o he economic and inancial c isis. A down u n caused by he co ona i us pandemic is expec ed o deepening inequali ies, mainly due o he inabili y o households o epay exis ing deb s o inance basic li ing needs. Unde s anding he de e minan s o household indeb edness and inancial ulne abili y is c ucial o policymake s who p ocess measu es o p e en inc easing household indeb edness. This pape in es iga es he de e minan s o household inancial ulne abili y in eu o a ea coun ies using he Household Finance and Consump ion Su ey mic o-da ase collec ed by he Eu opean Cen al Bank. The quan i a i e app oach was applied using o dina y leas squa e and quan ile es ima ion p ocedu es. The di e ence be ween OLS and quan ile es ima ions showed he app op ia eness o using he quan ile eg ession app oach. Pe o mance analysis p o ed ha only he numbe o elde ly and he alue o weal h and exis ence o mo gage in e es ax elie s a is ically signi ican a ec s he le el o ulne abili y in all h ee wa es. While he inc easing numbe o elde ly and g ea e alue o household weal h lowe s he ulne abili y, he e ec o mo gage in e es ax elie di e s ac oss indi idual wa es. All o he used ac o s a e essen ial and s a is ically signi ican o he inancial ulne abili y o households as well, bu he impo ance and signi icance could di e ac oss he dis ibu ion and indi idual wa es. The e ec o inancial asse s, educa ion, and employmen we e ound o be nega i e in all obse a ions o all wa es. On he o he hand, he numbe o child en and he alue o households’ eal asse s is associa ed wi h inc eased inancial ulne abili y indica o s. Keywo ds: Household, ulne abili y, indeb edness, eg ession analysis. JEL Classi ica ion: C21, D14, G51. APA S yle Ci a ion: Šubo á, N., Mu a, L., & Buleca, J. (2021). De e minan s o Household Financial Vulne abili y: E idence om Selec ed EU coun ies. E&M Economics and Managemen , 24(3), 186–207. h ps://doi.o g/10.15240/ ul/001/2021-3-011 In oduc ion The inancial c isis o 2007/2008, known as he global inancial c isis, caused by a combina ion o an asse p ice bubble in he eal es a e sec o and a c edi bubble leading o excessi e le e age, highligh ed he impo ance o he household sec o o inancial s abili y o he whole economy. Easy o ge a loan and he belie ha he house p ices would app ecia e encou aged mo e bo owe s o ge in o deb . Ame ican households and inancial ins i u ions became deeply indeb ed. A he end o 2007, Ame ican households’ o al loans and deb secu i ies ela i e o he GDP was 98.55% (In e na ional Mone a y Fund, 2020). Mo gage de aul s caused by he inancial c isis a ec ed EM_3_2021.indd 186 8.9.2021 9:58:19 187 3, XXIV, 2021 Finance inancial s abili y also in Eu opean coun ies. The household sec o can in luence he economy mainly due o i s size and posi ion on he inancial ma ke s, bu on he o he hand, he economic si ua ion o households is also a ec ed by a ious social, economic, and poli ical changes. High inancial ulne abili y and high le el o household deb a e p ecu so s o c isis ha esul in a g owing in e es in analysing he inancial si ua ion, isk p o ile, and s abili y o households. Financial ulne abili y is he s a us o inancial ins abili y, in which households a e exposed o a ious inancial isks and shocks (Lee & Sab i, 2017). Financial ulne abili y is also ep esen ed as he po e y o asse s o lowe weal h accumula ion, leading o he inabili y o cope wi h unexpec ed si ua ions such as unemploymen , illness, o highe housing- ela ed expenses (Abid & Sha iai, 2018; Noe hidaja i e al., 2021). Vulne able households do no pose a isk only o he economy bu also o hemsel es due o se e al easons. Lack o inancial s abili y, inabili y o inance consump ion and a highe le el o indeb edness a ec u u e well-being and psychological ea u es o household membe s as well. In connec ion wi h ensu ing inancial s abili y and lowe ing he ulne abili y o households, pe sonal inancial managemen is conside ed he mos signi ican p oblem. Managing esou ces and gaining con ol o e he inancial si ua ion allow indi iduals o assess he inancial si ua ion o he en i e household (T eano , 2016; Lee & Sab i, 2017). The mos common indica o o household inancial ulne abili y is household deb used o calcula e a ious ulne abili y measu emen s (deb - o-asse a io, deb - o-income a io, deb se ice- o-income a io). Household deb in he eu o a ea e alua ed by he g oss deb - o-income a io has luc ua ed in he las decade. I eached he highes le el in 2010 (98.79%). F om his yea , he eu o a ea household deb has dec eased by 5.11%. The highes alue o he g oss deb - o- income a io was epo ed in Denma k (214.16%) and Cyp us (134.18%), while he lowes alue o his indica o was eco ded in Romania (24.00%), Hunga y (33.31%), and La ia (32.19%) in 2019. The g oss deb - o-income a io o he Slo ak households has isen om 30.87% in 2007 o 69.64% in 2019 (Eu os a , 2019). The massi e inc ease o household deb o e he las decades could be pa ially a ibu ed o he in oduc ion o he economic and mone a y union ha caused a con e gence o coun ies’ in e es a es joined in he Eu ozone. The common cu ency Eu o elimina ed he exchange a e isk and made loans mo e a ailable (Yildi im, 2015; Nölke, 2016). Nowadays, he h ea o household indeb edness inc eases as he economic c isis caused by he co ona i us is expec ed o deepen inequali ies due o he inabili y o epay exis ing deb and o inance basic li ing needs. Two yea s be o e he pandemic hi , one o h ee EU households could no handle unexpec ed expenses, while sa ings o many households we e equi alen o jus a ew weeks o basic consump ions (Deme izs e al., 2020). As he c isis o las yea has led o subs an ial educ ions in ea nings, i has u he educed he abili y o households o inance unexpec ed expendi u es (Midões & Se é, 2020). Mo eo e , one o he main ools o educing inancial ulne abili y is a su icien le el o liquid inancial asse s, especially sa ings ha can be used as an income eplacemen . Compa ed o U.S. households, Eu opean households ha e ewe inancial asse s, and i also con ibu es o he impo ance o ulne abili y analysis (Eu os a , 2021; S a is a, 2021). F om a p ac ical poin o iew, household inancial s abili y is essen ial o de eloped coun ies as i ep esen s one o he h ea s o economic eco e y om he economic c isis. To ale households o isk ac o s and ake p e en i e measu es sui able o di e en households, i is necessa y o know wha has he mos signi ican impac on ulne abili y. The e o e, he e is a ques ion abou which ac o s deepen he inancial ulne abili y he mos and whe he i changes a a ious le els o indeb edness. The submi ed pape aims o iden i y socio- demog aphic de e minan s o indeb edness aising he household inancial ulne abili y in selec ed EU coun ies. The pape also analyses how he implemen ed mac op uden ial policies ansla e in o di e en le els o household inancial ulne abili y indica o . The s udy esul s can help na ional and in e na ional au ho i ies de e mine which household cha ac e is ics and household heads need o be suppo ed o educe inancial ulne abili y. Fu he mo e, he conduc ed s udy helps o answe he ollowing esea ch ques ions:  Wha a e he key demog aphic and social ac o s a ec ing he le el o households’ inancial ulne abili y? EM_3_2021.indd 187 8.9.2021 9:58:19 188 2021, XXIV, 3 Finance  Wha e ec do di e en implemen ed mac op uden ial policies ha e on he le el o households’ inancial ulne abili y? 1. Backg ound Households a e ulne able due o se e al easons. The mos c i ical ac o s a ec ing inancial s abili y and ulne abili y a e socio- demog aphic, economic cha ac e is ics (income, sol ency, age, he le el o educa ion, household size, ma i al s a us, inancial beha iou , and sol ency), and pe sonal cha ac e is ics ( isk ole ance, inancial li e acy) o each membe in he household (Rahim, 2011; Ca he ine e al., 2016; Daud e al., 2018; Walugemde e al., 2019). Households’ socio- demog aphic cha ac e is ics such as age, household size, numbe o child en, gende , and educa ion d i e ulne abili y o ces. To mi iga e he inancial ulne abili y o households and i s consequences, he numbe o s udies analysing he de e minan s o ulne abili y has inc eased. In addi ion, conside able a en ion is pu o inancial ulne abili y using a ious econome ic me hods and ulne abili y measu emen s. Household membe s acqui e inancial managemen skills a an ea ly age. They a e su ounded by di e en social g oups and occasionally y o imi a e he consump ion habi s and li ing s anda ds o hei neighbou s, colleagues, and people a ound hem e en hey ha e lowe income. Households ha canno co e hei consump ion a e mo e indeb ed, bu hey a e mo e likely o be unable o pay o hei deb s and expose hemsel es o inancial ins abili y. Inc easing income inequali y igge s deb - inanced consump ion, leads o deb accumula ion, and inc eases households’ inancial ulne abili y (Wildaue , 2016). Young people usually se up hei households; hey a e d i en by ma e ialism and bo ow ea ly. I leads o deb accumula ion and h ea s o inancial s abili y. The e ec o age on deb is nega i e because olde people usually spend less and do no co e hei consump ion by deb . I is con i med in he s udies using simple eg ession and mul ile el mixed-e ec linea eg ession (Danzige e al., 1982; Haq e al., 2018). The inancial ulne abili y o households dec eases wi h he inc easing age (G ejcz & Żółkiewski, 2017; Azzopa di e al., 2019). Con a y o his, ano he c oss-coun y analysis o households’ inancial ulne abili y and i s de e minan s based on he es ima ion o a linea eg ession equa ion showed ha young people a e mo e suscep ible o po en ial ulne abili y (Daud e al., 2018). Howe e , a highe deb o households wi h young membe s is no as ala ming as he indeb edness o he elde ly ha Modigliani’s Li e Cycle Income Hypo hesis desc ibes. Acco ding o his hypo hesis, he income o indi iduals inc eases o e he li e cycle un il i eaches he maximum in midli e. I is associa ed wi h mo e signi ican sa ings (Modigliani, 1986). On he o he hand, he income o olde people usually dec eases. Wi hou e ec i e pension sys ems, insu ance plans, and suppo sys ems, hey canno epay deb s ha pose a isk no only o hei inancial s abili y bu also o he s abili y o inancial ins i u ions. Household size and he numbe o child en also ha e a no iceable e ec on he demand o loans, bu i can be seen indi ec ly h ough li ing expenses. Analysing mic o inance and household’s access o c edi by p obi modelling in he s udy o Togba (2012) showed ha households wi h mo e membe s ha e highe expenses, and he e o e he e is a highe p obabili y o applying o a loan o und hei consump ion. A s udy using a quan ile eg ession app oach o de e mine he cha ac e is ics o households’ sa ing a e explains ha child en a e usually e e ed o as indica o s o household dependency. As a esul , households wi h mo e child en spend mo e and sa e less (Hua & E eyge s, 2019). A s udy de e mining he cha ac e is ics o household o e -indeb edness showed ha he inancial s abili y o households depends on he gende o he household head, and he inancial beha iou o men and women can di e . Female-headed households a e usually mo e indeb ed, explained by he lowe age o e i emen , uns able and lowe a e age income, and esponsibili y o bea ing child en. Al hough deb - o-income a ios a e usually much mo e o male-headed households, emales wi h loans a e mo e likely o be o e -indeb ed and unable o epay he exis ing loan (N salaze & Ikhide, 2016). On he o he hand, women a e usually mo e isk-a e se he e o e p e e in es men s in sa e , lowe -yield asse s ha lowe hei inancial ulne abili y (Killewald e al., 2018). Ano he socio-demog aphic ac o essen ial o he inancial s abili y o households is he le el o educa ion. Highe le els o EM_3_2021.indd 188 8.9.2021 9:58:19 189 3, XXIV, 2021 Finance educa ion and inancial li e acy lowe inancial ulne abili y because i imp o es inancial knowledge and skills. I is associa ed wi h a be e unde s anding o he di e en inancial p oduc s and has dec eased inancial ulne abili y. Financial li e acy and sel -con ol in luence he le el o unsecu ed deb o e ed by non-banking ins i u ions, and i is also e lec ed in inancial ulne abili y indica o s (S i e al., 2020). Households wi h he lowe educa ional a ainmen o each membe a e mo e indeb ed and end o ail in deb epaymen (Azzopa di e al., 2019). On he o he hand, he households wi h a highe le el o educa ion ha e be e inancial managemen and lowe inancial ulne abili y and inancial agili y (Noe hidaja i e al., 2021; Yuso e al., 2015). Ano he s udy analysing measu emen s and de e minan s o household inancial ulne abili y by he ac ional logi es ima ion echnique explains ha educa ional le els p edic he abili y o a household o manage inancial esou ces. Educa ional a ainmen is also essen ial in he sa ings p ocess. Subjec s wi h lowe educa ional a ainmen end o sa e less. On he o he hand, mo e signi ican sa ings o indi iduals wi h highe educa ion help o e come unexpec ed economic si ua ions and main ain inancial s abili y (B ounen e al., 2016). A s udy by Sachin e al. (2018) explains ha inancial ulne abili y is in luenced by inancial de e minan s such as asse s, weal h, and income. An asse is nega i ely associa ed wi h he le el o inancial ulne abili y while i is a quick sou ce o income mainly in unexpec ed si ua ions, bu only a speci ic ype o asse s leads o he lowe inancial ulne abili y. Fo example, sa ings a e quickly mone isable asse s, and he e o e hey could be used as an income eplacemen . On he o he hand, he e ec o buildings and land asse s owne ship is no con i med while hey a e high illiquid, and i is ha d o use hese asse s immedia ely in an unexpec ed si ua ion. I is explained in he s udy using desc ip i e esea ch in analysing spending pa e ns and hei e ec s on inancial ulne abili y. Financial ulne abili y is d i en by low weal h as well. Weal h accumula ion helps build eme gency unds ha can help make a s ess ul economic si ua ion easie o handle. Basic mic oeconomic heo y sugges s ha highe income dec eases inancial ulne abili y, bu esea ch pape s’ esul s can be wo old. Fi s ly, i is in line wi h he s udy sugges ing ha he income le el is nega i ely associa ed wi h household ulne abili y while highe income allows indi iduals o abso b ad e se shocks such as inc easing in la ion o illness (Noe hidaja i e al., 2021). Addi ionally, i some household membe s lose hei jobs, hey lose hei income, and he e o e hey smoo h consump ion by bo owing (Kuk, 2017). On he o he hand, ano he s udy examining he household indeb edness and inancial well- being by O dina y Leas Squa e Reg ession con i med ha highe income causes g ea e indeb edness. Thus, i inc eases ulne abili y h ough highe access o deb (Handayani e al., 2016). Se e al s udies poin ed o he e ec o mac oeconomic ac o s impo an o household ulne abili y. The mos conside able mac oeconomic ac o s a ec ing ulne abili y a e in e es a es, le el o unemploymen , and house p ices, bu he le el o indeb edness depends on he mac op uden ial policy. Reg ession analysis o he household deb , mac oeconomic undamen als, and household cha ac e is ics indica ed ha g ea e unemploymen , in e es a es, and inc easing house p ices e lec he highe ulne abili y o households (Ca he ine e al., 2016; Pa elka & Tomas, 2016). The posi i e e ec o unemploymen and in e es a es on ulne abili y is also con i med by analysing de e minan s o household deb based on he au o eg essi e dis ibu ed lag modelling and O dina y Leas Squa e (Abid & Sha iai, 2018; Azmin e al., 2019). The le el o household indeb edness and ulne abili y migh depend on he coun y households li e in and i s policies. Some coun ies (Belgium, he Czech Republic, Denma k, Es onia, Finland, I aly, Luxembou g, he Ne he lands, Sweden) p o ide a mo gage in e es ax elie ha allows homeowne s o deduc hei in e es on a loan. Highe ax deduc ion inc eases he demand o deb (Bo e e al., 2016). Many s udies con i med ha mo gage in e es ax elie encou ages people o buy la ge homes and commi o la ge mo gages (Alpanda & Zabai y, 2017; G ube e al., 2017). In he case o he ax deduc ion aboli ion, he e is an immedia e educ ion in in es men in housing by a ound 6.00%. As a esul , i is subsequen ly e lec ed in indica o s o household indeb edness and inancial s abili y (Keigh ley, 2020). EM_3_2021.indd 189 8.9.2021 9:58:19 190 2021, XXIV, 3 Finance Mo eo e , a ious coun ies ha e se di e en limi s on loan- o- alue a ios (LTV). An inc ease in LTV leads o a highe demand o secu ed deb , mainly o young and low-income households, because hey may inance hei p ope y almos en i ely by deb (Ba ios e al., 2019). Ano he s udy explains ha households holding loans wi h a lowe LTV a e conside ed less ulne able due o con inued abili y o epay exis ing loans e en in a decline in p ope y p ices (Bilyk e al., 2017). Rela ed o he de ini ion o household inancial ulne abili y, a ious measu emen s o ulne abili y can be used. The mos common indica o o ulne abili y is he deb se ice- o- income a io gi en by he sha e o obliga ed deb paymen s and disposable income (Ampudia e al., 2015). Au ho s o o he s udies use he deb - o-income a io and deb - o-asse a io o measu e he inancial ulne abili y o households (Fessle e al., 2017; Leika & Ma che ini, 2017). These measu es o inancial ulne abili y used a ious h esholds o de ine a household as ulne able. Fo example, Te aneo (2018), and Fessle e al. (2017) se he h eshold le el o deb - o-asse a io a 75%, o deb - o-income a io a h ee imes and deb se ice- o-income a io a 40%. The au ho s a gue ha households wi h indica o s abo e hese alues a e no in de aul a p esen , bu he e is a g ea e p obabili y o ha ing di icul ies in he u u e. 2. Da a Desc ip ion P esen ed analysis used he Household Finance and Consump ion Su ey (HFCS) da a, con aining in o ma ion on socio-demog aphic a iables, asse s, liabili ies, income, consump ion, and household inancial si ua ion and economic beha iou . I is conduc ed in he Eu ozone membe s a es om 2010/ea ly 2011 e e y h ee yea s. HFCS is coo dina ed by he Eu opean Cen al Bank (ECB), and in each coun y, i is ca ied ou by he Na ional Cen al Bank. The esponden sample size was inc easing in each wa e: 62,000 households (15 coun ies) in HFCS 1; 84,600 households (20 coun ies) in HFCS 2; and he o al sample size o he HFCS da a om he hi d wa e we e 91,200 households (22 coun ies) (Eu opean Cen al Bank, 2016b). The da ase is based on me hodological p inciples, ensu ing he compa abili y o esul s in a ious Eu opean coun ies (Eu opean Cen al Bank, 2016a). A speci ic me hodological aspec o he da a is he use o Bayesian-based mul iple impu a ions ha helps o ackle he issue o non- esponse. The impu a ion p ocess esul s in i e e sions o da a and helps o p ese e he cha ac e is ics o he dis ibu ion and he ela ionships be ween di e en a iables. Mo eo e , o ensu e he sample’s ep esen a i eness, HFCS used a se o popula ion weigh s as well, and he sum o he es ima ion weigh s equals he o al numbe o households in he coun y. The Na ional Banks calib a ed he weigh s based on he numbe o households wi h 1, 2, 3 o mo e membe s, he numbe o men and women, di e en age g oups in each egion, and dis ibu ion o he popula ion acco ding o he economic ac i i y (Eu opean Cen al Bank, 2016b). Speci ic limi s o HFCS e lec s i s c oss- sec ional basis, so he sample o in e iewed households can di e ac oss he wa es. I is essen ial o ake his ea u e in o accoun mainly when in e p e ing changes in he cha ac e is ics o speci ic g oups o households. Mo eo e , he HFCS sample does no ha e a panel s uc u e as a whole. I should be highligh ed ha i is no easible o d aw any conclusions on he economic pe o mance o he same households ac oss he indi idual wa es (Eu opean Cen al Bank, 2020). E e y wa e o he su ey has a di e en coun y base as well. The lis o coun ies ha pa icipa ed in he indi idual wa es o he HFCS is a ached in he Appendix (Tab. A1). The alues o asse s and liabili ies a e ob ained by sel -assessmen , bu hey use suppo i e documen a ion such as accoun s a emen s o ax e u ns. This s ep o da a collec ion is conside ed a delibe a e choice, gi en he goal o using he su ey o s udy he beha iou o indi idual households (Eu opean Cen al Bank, 2021). Despi e men ioned limi a ions o HFCS, i is he only ha monised se o da a based on households’ balance shee s which p o ide de ailed household-le el in o ma ion on weal h o he en i e household popula ion ac oss he EU coun ies (Fessle & Schü z, 2018; Te aneo, 2018). The app oach o analyse he de e minan s o household inancial ulne abili y includes he ollowing household cha ac e is ics: Household ulne abili y: To measu e he household inancial ulne abili y, he a io be ween o al mon hly deb paymen s and household g oss mon hly income was used. EM_3_2021.indd 190 8.9.2021 9:58:19 191 3, XXIV, 2021 Finance The g ea es mean ulne abili y o households in he HFCS wi h he alue o 170.30% was eco ded in he hi d wa e. The mean ulne abili y o households had dec eased be ween he i s and he second wa e om 133.60% o 128.18%. The median ulne abili y was lowe han he mean and was dec easing he whole analysed pe iod, om 13.00% in he i s wa e o 12.30% in he second and 11.00% in he hi d wa e. P esence o he elde ly: The a iable p esence o he elde ly p o ides in o ma ion abou he numbe o household membe s aged 65 yea s o mo e li ing in one household. Mos membe s olde han 65 yea s li ing in one household we e eco ded in he i s wa e (5 membe s), while in he second and hi d wa e, no mo e han i e membe s aged 65 and mo e li ed unde he same oo . Child en: All dependen pe sons aged 0–15 and pe sons aged 16–24 do no wo k and always li e wi h a pa en – he mos dependen child en (13) li ing in one household in he i s wa e. The a e age numbe o dependen child en was dec easing in all h ee wa es. On he o he hand, numbe o households wi hou child en inc eased om 65.91% in he i s o 68.81% in he second and 70.22% in he hi d wa e. Educa ion: Va iable in o ms abou he highes comple ed educa ion o he e e ence pe son. HFCS uses Canbe a ISCED classi ica ion, and in his s udy, six s ages o ISCED classi ica ion a e agg ega ed in o ou ca ego ies. The i s ca ego y includes no o mal/below ISCED 1 educa ion and p ima y educa ion, he second lowe seconda y and second s age o p ima y educa ion. The hi d ca ego y ob ains uppe seconda y and pos -seconda y educa ion, while he ou h ep esen s e ia y and highe educa ion. In all h ee wa es, he mos e e ence pe sons ha e uppe seconda y educa ion, while households wi hou educa ion had he smalles sha e. Gende : I is a dummy a iable equal o 1 i he e e ence pe son is men, o he wise = 0. In all h ee wa es, he sha e o men in a posi ion o e e ence pe son was almos wo imes highe han he sha e o women. Employmen : Numbe o household membe s ha a e cu en ly employed. The mos signi ican sha e had households wi hou any employed household membe s in all h ee wa es. The mean numbe o employed household membe s was 0.97 in he i s , 0.95 in he second, and 0.98 in he hi d wa e, while he median numbe was equal o one in all h ee su eys. Real asse s: Real asse s o households ep esen s he alue o o al eal asse s, including he p ima y esidence, ehicles, aluables, and business asse s exp essed in eu os. The a e age alue o a household’s eal asse s was he highes in he i s wa e, 467,539.26 eu os. On he con a y, he lowes a e age alue was 337,854.39 eu os eco ded in he hi d wa e. Financial asse s: Financial asse s include he alue o deposi s, mu ual unds, bonds, sha es, and money owed o households exp essed in eu os. The a e age alue o a household’s inancial asse s was dec easing he whole h ee wa es, om 119,535.63 eu os in he i s o 98,999.30 eu os in he hi d wa e. Weal h: Va iable weal h exp ess o al household asse s minus o al ou s anding household liabili ies in eu os. The mos signi ican a e age household weal h was in he second wa e (425,714.74 eu os). The lowes a e age weal h o households was eco ded in he hi d wa e, 208,208.40 eu os. The lowes median weal h o households ha pa icipa ed in he HFCS was 114,597.60 eu os in he hi d wa e. Loca ion: Dummy a iable indica ing whe he he household li es in a coun y o Wes e n Eu ope = 1, o he wise = 0. To ake in o accoun he di e ences o indi idual coun ies om he mac oeconomic poin o iew, he ollowing a iables ep esen ing di e en implemen ed mac op uden ial policies published by he Eu opean Commission (2019) we e also included in he analysis: Loan- o- alue a io: Va iable ep esen ing he limi o he loan- o- alue a io o a gi en coun y. LTV = 1, i household li es in a coun y whe e he maximum LTV is in he ange 0.60–0.80; LTV = 2, i he maximum LTV is in he ange 0.81–0.99, and LTV = 3 i he maximum LTV is mo e han 0.99. Mo gages in e es ax elie : Dummy a iable ha deno es he exis ence o ax elie on mo gage paymen s. The a iable equals one i he household li es in a coun y whe e such an exemp ion exis s, o he wise = 0. Desc ip i e s a is ic o a iables is summa ised in Tab. 1 and Tab. 2. All s a is ics we e calcula ed using he HFCS da abase, su ey weigh s, and i e impu ed da ase s. EM_3_2021.indd 191 8.9.2021 9:58:20 192 2021, XXIV, 3 Finance 3. Me hodology De e minan s o household inancial ulne abili y we e es ima ed ollowing he o dina y leas squa e (OLS) eg ession. OLS eg ession allows de e mining he ela i e in luence o one o mo e p edic o s (explana o y) a iables o he c i e ion alue (explained a iable) by es ima ing condi ional mean unc ions. Addi ionally, es ima ed coe icien s in he eg ession mean app oach exp ess he a e age change in he explained a iable associa ed wi h a one-uni change in he ela ed explana o y a iable. The gene al equa ion o he OLS mul iple eg ession model has he ollowing o m: Yi = β0 + β1xi,1 + β2xi,2 + … + εi (1) Va iable Minimum Maximum Mean Median S d. de . Vulne abili y Fi s wa e 0.00 545.16 1.34 0.13 46.07 Seconds wa e 0.00 678.00 2.28 0.12 48.13 Thi d wa e 0.00 471.00 1.70 0.11 45.32 Weal h (EUR housand) Fi s wa e −57,203.15 401,119.66 234.94 116.47 8.54 Seconds wa e −3,850.00 524,042.00 425.71 136.66 310.10 Thi d wa e −6,758.20 369,417.85 208.21 114.60 289.80 Real asse s (EUR housand) Fi s wa e 0.00 391,419.30 467.54 198.56 2,630.06 Seconds wa e 0.00 468,442.00 355.60 150.50 2,346.41 Thi d wa e 0.00 345,312.43 337.85 141.42 1,913.96 Financial asse s (EUR housand) Fi s wa e 0.00 101,139.66 119.54 13.30 956.84 Seconds wa e 0.00 295,488.21 108.29 9.92 137.82 Thi d wa e 0.00 192,392.51 99.00 9.79 1,148.05 Employmen Fi s wa e 0.00 6.00 0.97 1.00 0.01 Seconds wa e 0.00 7.00 0.95 1.00 0.01 Thi d wa e 0.00 8.00 0.98 1.00 1.38 Child en Fi s wa e 0.00 13.00 0.54 0.00 0.01 Seconds wa e 0.00 11.00 0.53 0.00 0.01 Thi d wa e 0.00 12.00 0.52 0.00 0.01 Elde ly Fi s wa e 0.00 5.00 0.42 0.00 0.01 Seconds wa e 0.00 4.00 0.44 0.00 0.01 Thi d wa e 0.00 4.00 0.45 0.00 2.45 Sou ce: HFCS, own Tab. 1: Desc ip i e s a is ic EM_3_2021.indd 192 8.9.2021 9:58:20 193 3, XXIV, 2021 Finance whe e: Yi : explained a iable, in case o ou s udy i was he inancial ulne abili y ep esen ed by deb se ice- o-income a io; x1 , x2 , ..., xi : explana o y a iables, ep esen he household cha ac e is ics in an obse a ion i; i: he numbe o obse a ions, i = 0, 1, 2, …, N; ε: e o e m; Va iable Fi s wa e Second wa e Thi d wa e Gende Men 68.76 62.39 61.65 Women 31.24 37.61 38.35 Educa ion Null 1.60 0.78 0.14 ISCED 1 19.25 14.61 13.42 ISCED 2 16.23 15.20 12.75 ISCED 3 34.38 39.82 42.18 ISCED 4 3.64 2.87 3.57 ISCED 5 22.70 24.69 25.81 ISCED 6 2.20 2.03 2.13 Employmen Null 36.71 38.19 36.94 One 33.46 32.80 33.33 Two 26.24 25.49 25.83 Th ee 2.97 2.95 3.04 Fou 0.57 0.56 0.73 Fi e and mo e 0.05 0.01 0.13 Elde ly Null 65.99 67.49 66.51 One 20.40 21.66 22.01 Two 10.81 10.72 11.37 Th ee 1.02 0.12 0.10 Fou and mo e 1.78 0.01 0.01 Child en Null 65.91 68.81 70.22 One 15.81 15.12 13.65 Two 12.68 12.50 11.75 Th ee 3.17 3.07 3.36 Fou 0.60 0.71 0.77 Fi e and mo e 1.83 0.25 0.25 Sou ce: HFCS, own Tab. 2: Desc ip i e s a is ic (% sha e o household based on household cha ac e is ics) EM_3_2021.indd 193 8.9.2021 9:58:20 194 2021, XXIV, 3 Finance β0: es ima ed Y-in e cep ; βj: p oxy he alue o eg ession coe icien j o j = 0, 1, 2, …, K. The o dina y leas squa es es ima o is ob ained by minimizing he sum o squa ed esiduals: (2) OLS model was checked o compe ing key assump ions: mul i a ia e no mali y, no au oco ela ion, and homoscedas ici y, and no co ela ion be ween explana o y a iables using Ja que-Be a es , VIF ac o , Du bin-Wa son es , B eusch-Pagan es , and Gold eld-Quand es . Viola ion o some o hese assump ions should lead o biased coe icien es ima ions. He e oscedas ici y and au oco ela ion- consis en (HAC) es ima o s o he a iance- co a iance ma ix helped sol e his issue (Zeileis e al., 2004). While he leas -squa es eg ession analysis does no gi e obus esul s in he p esence o ou lie s and da a should ha e skewness and ku osis ha ma ches a no mal dis ibu ion, as an al e na i e, quan ile eg ession was used (Noma ye & Phi i, 2017; Ri e o & San oman, 2018; Hua & E eyge s, 2019). The quan ile eg ession app oach can be applied e en i he assump ion o homoscedas ici y is iola ed. Fo example, OLS eg ession conside s he e ec o explana o y on explained a iables a he mean, bu quan ile eg ession conside s his ela ionship a di e en quan iles (deno ed by q) o he dis ibu ion o an explained a iable (Koenke & Basse , 1978). Quan ile eg ession aims a es ima ing he condi ional median (o o he quan iles) o he esponse a iable employing symme ic weigh s o he median (quan ile = 0.5) and asymme ic weigh s o o he quan iles (e.g., 0.1, 0.2, ..., 0.9). Quan ile eg ession es ima es a e ob ained by minimising an asymme ically weigh ed sum o absolu e de ia ions (Waldmann, 2018). Following Koenke and Basse (1978), conside (yi , xi) i = 1, ..., N a andom sample ob ained om a popula ion, whe e xi is a ec o o explana o y a iables and yi ep esen s explained a iable. Then he gene al equa ion o eg ession o a ce ain quan ile 0 < θ <1 is de ined as he solu ion o he minimiza ion p oblem: (3) Mone a y alues (weal h, income, asse s, and deb ) used in he p esen ed s udy do no mee he s a is ical assump ions o esea ch mainly due o skewed dis ibu ions o en; he e o e, he na u al log and ca ego ical ans o ma ions a e used. Howe e , when he na u al log is no he mos app op ia e ans o ma ion, he e a e se e al cases, while i should no be aken o ze o o nega i e alues. The submi ed pape used in e se hype bolic sine ans o ma ion ha can be exp essed as (F iedline e al., 2014): (4) whe e: x is he a iable o in e es (weal h, asse , deb ) and ihs(x) is he ans o med e sion o his a iable. The whole s a is ical compu ing analysis was execu ed in he R so wa e en i onmen (R Co e Team, 2018) and ook in o accoun he weigh s and mul iple impu a ions o he HFCS da abase. 4. Resea ch Resul s and Discussion The e ec o household and household head cha ac e is ics on he le el o household inancial ulne abili y in he selec ed Eu opean coun ies is epo ed in Tab. 3, Tab. 4, and Tab. 5 ha display he esul s o OLS and quan ile eg ession. The i s column con ains he OLS es ima es, he second OLS es ima es a e applica ion o he e oscedas ici y and au oco ela ion consis en (HAC) co a iance ma ix. The nex columns show he esul s o quan ile eg ession acco ding o a ious quan iles. G ey shaded ows display es ima es, while whi e i alic ows a e p- alues (bold on indica es s a is ical signi icance). Mo eo e , sca e plo isualisa ion was used and p esen ed in Fig. 1, Fig. 2, and Fig. 3. The x-axis displays he quan iles, while he y-axis p esen s coe icien s. The s aigh do ed line ep esen s OLS es ima es, and wo s aigh dashed lines show OLS con idence in e als. EM_3_2021.indd 194 8.9.2021 9:58:20 201 3, XXIV, 2021 Finance o cope wi h exis ing inancial commi men s (Eu opean Cen al Bank, 2013). House p ices decline lowe ed he ne weal h o households ela i e o hei deb . A he same ime, deb paymen s swelled in eac ion o in la ion and dep ecia ion. As a consequence o he global inancial c isis, many Eu opean households los inancial s abili y and had o cope wi h ulne abili y (Claessens e al., 2014). Thus, he economic en i onmen and essen ial changes in he alue o eal es a e and household ne weal h signi ican ly a ec ed he ulne abili y o households in he second wa e o he su ey. Ou esul s indica e ha weal h, inancial, and eal asse s a e s a is ically signi ican in each decile o ulne abili y dis ibu ion compa ed o he i s wa e. Ano he s a is ically signi ican de e minan ac oss he whole dis ibu ion o deb se ice- o-income a io is mo gage in e es ax elie , he numbe o elde lies, and employmen . The las hi d wa e o he HFCS epo ed in Tab. 5 and Fig. 3 did no signi ican ly di e om he p e ious wo wa es. In he pe iod be ween he yea o he second (2014) and hi d (2017) su ey, he g adual economic eco e y associa ed wi h he s eadily declining unemploymen a e and lowe ing cos s o household deb could be obse ed. Conce ning his, he hi d wa e highligh ed he he e ogeneous de elopmen s in o al liabili ies and asse s o households. In his pe iod, he mos indeb ed Eu opean households could eel an easing o hei inancial p essu e mainly due o income and asse p ices ising due o economic eco e y (Eu opean Cen al Bank, 2020). Fig. 3: Resul s o quan ile eg ession om he hi d wa e o he HFCS Sou ce: FCS, own EM_3_2021.indd 201 8.9.2021 9:58:23 202 2021, XXIV, 3 Finance As i can be seen, he impac o household, household-head cha ac e is ics, inancial, and mac oeconomic de e minan s gene ally emained unchanged in all h ee wa es excep o mo gage in e es ax elie , LTV es ic ions, and dummy a iables Loca ion and Gende . A a iable ep esen ing he exis ence o mo gage in e es ax elie showed he mos conside able di e ence. While in he i s wo wa es o he HFCS su ey we e households om coun ies wi h mo gage in e es ax elie less indeb ed, ax deduc ion was associa ed wi h inc eased ulne abili y in he las wa e. Al hough he lis o coun ies (Belgium, Es onia, Finland, I aly, Luxembou g, he Ne he lands) p o iding his ype o ax deduc ion did no change be ween 2014 and 2017, household demand o mo gages inc eased. Thus, while mo gage in e es ax elie encou ages people o buy la ge homes and commi o la ge mo gages (Alpanda & Zabai y, 2017; G ube e al., 2017), i h ea ens household inancial s abili y. The HFCS hi d wa e esul s also show ha only male-headed households om he i s decile o deb se ice- o-income dis ibu ion a e mo e ulne able a e con olling all a iables. Acco ding o he esul s o analysis applied on he da a om he las wa e, households om Wes e n Eu opean coun ies a e less ulne able in he case o he uppe ou deciles. The di e ence was eco ded in he s a is ical signi icance o analysed a iables as well. Compa ed o he p e ious wo wa es, esul s con i m ha mo gage in e es ax elie , he numbe o elde lies, and he alue o eal asse s a e s a is ically signi ican ac o s. Mo eo e , he loan- o- alue a io and inancial asse s a e also s a is ically signi ican in he hi d wa e o HFCS. Conclusions In he cu en economic si ua ion, households ha e a challenging ole while conside ing hei expec a ions o li ing s anda ds and inancial decisions. Household economic beha iou , o e -indeb edness, and inancial ulne abili y ha e an impac on he inancial ma ke s and a e p ecu so s o c isis as well. I esul ed in a g owing in e es in analysing he inancial beha iou , isk p o ile, and s abili y o households. New da a su eys such as HFCS ha e opened a b oad ield o in es iga ing household indeb edness and allows au ho i ies o ake p i a e household cha ac e is ics in o accoun . The empi ical esea ch o his pape ocused on he po en ial d i e s o household inancial ulne abili y in eu o a ea households. By using all h ee wa es o HFCS ob ained om he Eu opean Cen al Bank, OLS and quan ile eg ession es ima ion p ocedu es we e conduc ed o conside he e ec o household, household-head, and coun y- speci ic cha ac e is ics on he le el o household ulne abili y. To ake in o accoun he skewness o mone a y alues, hype bolic sine ans o ma ion was used. In esponse o he esea ch ques ions, i can be s a ed ha only he numbe o household membe s aged 65 and mo e and he le el o weal h we e s a is ically signi ican socio-demog aphic ac o s ac oss he whole ulne abili y dis ibu ion in all h ee wa es. Mo e household membe s aged 65+ and g ea e alue o household weal h we e associa ed wi h he dec ease o household inancial agili y indica o . A mo e signi ican di e ence in esul s was obse ed in he case o a iables ep esen ing implemen ed mac op uden ial policies. In he i s wa e, he g ea e LTV has associa ed wi h an inc ease in he deb se ice- o-income a io. Households om coun ies wi h he exis ence o mo gage in e es ax elie epo ed lowe inancial ulne abili y. Resul s om he hi d wa e showed ha g ea e LTV leads o lowe ulne abili y, while ax deduc ion expec s highe ulne abili y o households. Wha exac ly explains he di e ence in he esul s is an open ques ion ha dese es o be explo ed u he . O he explana o y a iables did no epo s a is ical signi icance ac oss he whole dis ibu ion o ulne abili y. Howe e , mos o he explained a iables eco ded he same e ec on household inancial ulne abili y indica o s ac oss i s whole dis ibu ion in all h ee wa es. Resul s indica ed ha he numbe o child en and he alue o eal asse s we e he only a iables ha posi i ely a ec ed he ulne abili y in all Household Finance and Consump ion Su ey obse a ions. On he o he hand, he e ec o weal h, inancial asse s, educa ion, and employmen was nega i e in all obse a ions o all wa es. Howe e , his s udy has some limi a ions. Fo example, speci ic ea u es o he HFCS da abase, such as new coun ies pa icipa ed EM_3_2021.indd 202 8.9.2021 9:58:23 203 3, XXIV, 2021 Finance in each wa e o di e ences in he me hodology, could lead o biased esul s be ween indi idual wa es, and i should be aken in o conside a ion. The e o e, o u u e esea ch, we ecommend ex ending he analysis o indi idual coun ies. The submi ed s udy con ibu es o he exis ing li e a u e in se e al ways. Fi s ly, household-le el da a (HFCS) allowed de ailed analysis o household inancial ulne abili y and household and household-head cha ac e is ics. Fu he mo e, he applica ion o coun y-speci ic a iables enabled he conside a ion o he di e en coun ies and hei implemen ed policies ha could a ec he le el o ulne abili y. Secondly, while mos o he s udies analysing he de e minan s o inancial s abili y used da a om one wa e o he HFCS su ey, i does no allow o conside he di e en economic si ua ion ha due o he global inancial c isis occu ed be ween he i s and second wa e o he HFCS su ey. Quan ile eg ession applied indi idually o each wa e hus allows no only o compa e he esul s and ill his gap, bu also o con ibu e o he exis ing li e a u e. Mo eo e , using he quan ile eg ession app oach conside ed ha ac o s in luencing he le el o household ulne abili y could di e in indi idual quan iles o household ulne abili y dis ibu ion. Acknowledgemen s: This pape used he da a om he Eu osys em Household Finance and Consump ion Su ey. The Eu opean Cen al Bank is no esponsible o he esul s in e p e ed in his esea ch pape . The p esen ed pape is a pa ially ou pu om he G an GAAA 5-5/2020 “Family business in egions”. Re e ences Abid, A., & Sha iai, M. H. M. (2018). De e minan s o Household Financial Vulne abili y in Malaysia and I s E ec on Low-Income G oups. Jou nal o Eme ging Economies & Islamic Resea ch, 6(1), 32–43. h ps://doi.o g/10.24191/jeei . 6i1.8772 Alpanda, S., & Zubai y, S. (2017). Add essing Household Indeb edness: Mone a y, Fiscal o Mac op uden ial Policy? Eu opean Economic Re iew, 92, 47–73. h ps://doi.o g/10.1016/j. eu oeco e .2016.11.004 Ampudia, M., Vlokho en, H. A., & Żochowski, D. (2016). Financial F agili y o Eu o A ea Households. Jou nal o Financial S abili y, 27, 250–261. h ps://doi.o g/10.1016/j. j s.2016.02.003 And é, C. (2016). Household Deb in OECD Coun ies: S ylised Fac s and Policy Issues (Economic Depa men Wo king Pape s No. 1277). Pa is: OECD Publishing. h ps://doi. o g/10.1787/5jm3xg kk1 2-en And ews, D., Sánchez, A. C., & Johanson, A. (2011). Housing Ma ke s and S uc u al Policies in OECD Coun ies (Economics Depa men Wo king Pape s, No. 836). Pa is: OECD Publishing. h ps://doi. o g/10.1787/5kgk8 2k9 3-en Azmin, N. M. A., Zaidi, W. N. W., & Mohamad, Z. (2019). The De e minan s ha In luence Household Deb Case in Malaysia. KnE Social Sciences, 1215–1226. Re ie ed om h ps:// knepublishing.com/index.php/KnE-Social/ a icle/ iew/4278/8786#in o/con ibu o _1 Azzopa di, D., Fa eed, F., Lenain, P., & Su he land, D. (2019). Assessing Household Financial Vulne abili y: Empi ical e idence om he US using machine lea ning (Economic Su ey o he Uni ed S a es: Key Resea ch Findings). Pa is: OECD Publishing. h ps://doi. o g/10.1787/75c63aa1-en Bi, L., & Mon al o, C. P. (2006): Eme gency Funds and he Al e na i e Fo ms o Sa ing. Financial Se ices Re iew, 13(2), 93–109. Bilyk, O., Uebe eld , A., & Xu, Y. (2017). Analysis o Household Vulne abili ies Using Loan-Le el Mo gage Da a (Financial Sys em Re iew 2017/11). Canada: Bank o Canada. Re ie ed Ap il 9, 2021, om h ps://www. banko canada.ca/wp-con en /uploads/2017/11/ s -no embe 2017-bilyk.pd Ba ios, S., Denis, C., I aškai ė-Tamošiūnė, V., Reu , A., & To es, E. V. (2019). Housing Taxa ion: A New Da abase o Eu ope (JRC Wo king Pape on Taxa ion and S uc u al Re o ms No 08/2019). Se illa: Eu opean Commission. Re ie ed Janua y 13, 2021, om h ps://ec.eu opa.eu/j c/si es/j csh/ iles/ j c118277.pd Bee , C. M., & Schu z, M. (2007). Cha ac e is ics o Household Deb in Aus ia: Does Household Deb Pose a Th ea o Financial S abili y? (Mone a y Policy and he Economy Q2/07). Aus ia: Aus ian Na ional Bank. Bo e , O., Casado, J. M., Cos a, S., Caju, P. D., McCa hy, Y., Sie minska, E., Tzamou ani, P., Villanue a, E., & Za adil, T. (2016). The Dis ibu ion o Deb ac oss Eu o-A ea coun ies: The Role o Indi idual Cha ac e is ics, Ins i u ions, and C edi Condi ions. In e na ional Jou nal o Cen al Banking, 12(2), 71–129. EM_3_2021.indd 203 8.9.2021 9:58:23 204 2021, XXIV, 3 Finance B ounen, D., Koedijk, K., & Pownall, R. (2016). Household Financial Planning and Sa ings Beha iou . Jou nal o In e na ional Money and Finance, 69, 95–107. h ps://doi. o g/10.1016/j.jimon in.2016.06.011 Bu ge , M., D’Souza, P., & Ve meulen, G. (2016). House P ices and Indeb edness in Sweden: A Model-based Assessmen o Policy Op ions (Economic B ie 021). Luxembou g: Publica ions O ice o he Eu opean Union. Re ie ed Ap il 9, 2021, om h ps://ec.eu opa. eu/in o/si es/in o/ iles/ ile_impo /eb021_en_2.pd Ca he ine, S. F. H., Yuso , J. M., & Mainal, S. (2016). Household Deb , Mac oeconomic Fundamen als and Household Cha ac e is ics in Asian De eloped and De eloping Coun ies. The Social Sciences, 11(18), 4358–4362. h ps:// doi.o g/10.36478/sscience.2016.4358.4362 Claessens, S., Kose, A., Lae en, L., & Valencia, F. (2014). Financial C ises: Causes, Consequences, and Policy Responses. Washing on, DC: IMF. Re ie ed Ap il 9, 2021, om h ps://www.elib a y.im .o g/doc/IMF071/ 20264-9781475543407/20264-9781475543407/ O he _ o ma s/Sou ce_PDF/20264- 9781484324295.pd ? edi ec = ue Danzige , S., Van De Gaag, J., Smolensky, E., & Taussig, M. K. (1982). The Li e-Cycle Hypo hesis and he Consump ion Beha io o he Elde ly. Jou nal o Pos Keynesian Economics, 5(2), 208–227. h ps://doi.o g/10.1 080/01603477.1982.11489357 Daud, S. N. M., Ma zuki, A., Ahmad, N., & Ke eli, Z. (2019). Financial Vulne abili y and I s De e minan s: Su ey E idence om Malaysian Households. Eme ging Ma ke s Finance and T ade, 55(9), 1991–2003. h ps://doi.o g/10.10 80/1540496X.2018.1511421 Deme zis, M., Domínguez-Jiménez, M., & Lusa di, A. (2020). The Financial F agili y o Eu opean Households in Time o COVID-19 (Policy Con ibu ion No 15). Belgium: B uegel. Re ie ed Ap il 15, 2021, om h p://aei.pi . edu/103258/1/PC-15-2020- inal.pd Eu opean Cen al Bank. (2013). The Eu osys em Household Finance and Consump ion Su ey, Resul s om he Second Wa e (ECB S a is ics Pape , No. 2). F ank u am Main: ECB. Re ie ed Janua y 13, 2021, om h ps://www.ecb.eu opa.eu/pub/pd /o he / ecbsp2en.pd ?2180 869d12ccc366869c941 9b3da32e Eu opean Cen al Bank. (2016a). The Eu osys em Household Finance and Consump ion Su ey, Resul s om he Second Wa e (ECB S a is ics Pape Se ies, No 18). F ank u am Main: ECB. Re ie ed Janua y 13, 2021, om h ps://www.econs o .eu/ bi s eam/10419/154653/1/ecbsp18.pd Eu opean Cen al Bank. (2016b). The Household Finance and Consump ion Su ey: Me hodological Repo o he Second Wa e (ECB S a is ics Pape , No 17). F ank u am Main: ECB. Re ie ed Janua y 13, 2021, om h ps://www.ecb. eu opa.eu/pub/pd /scpsps/ecbsp17.en.pd Eu opean Cen al Bank. (2020). The Eu osys em Household Finance and Consump ion Su ey, Resul s om he 2017 Wa e (ECB S a is ics Pape Se ies, No 36). F ank u am Main: ECB. Re ie ed Janua y 13, 2021, om h ps://www.ecb.eu opa.eu/pub/pd / scpsps/ecb.sps36~0245ed80c7.en.pd Eu opean Cen al Bank. (2021). Household Finance and Consump ion Su ey: Abou he Su ey. F ank u am Main: ECB. Re ie ed Ap il 10, 2021, om h ps://www.ecb.eu opa. eu/pub/economic- esea ch/ esea ch-ne wo ks/ h ml/ esea che _h cn- aq.cs.h ml Eu os a . (2019). G oss Deb - o-Income Ra io o Households. Luxembou g: Eu os a . Re ie ed Janua y 13, 2021, om h p:// appsso.eu os a .ec.eu opa.eu/nui/show. do?da ase = ec00104&lang=en Eu os a . (2021). Financial balance shee s. Luxembou g: Eu os a . Re ie ed Ap il 15, 2021, om h ps://ec.eu opa.eu/eu os a /da ab owse / iew/nasa_10_ _bs/de aul / able?lang=en Fessle , P., Lis , M., & Messne , T. (2017). How Financially Vulne able A e CESEE Households? An Aus ian Pe spec i e on i s Neighbou s (Focus on Eu opean Economic In eg a ion, Q2/17). Vienna: Na ional Bank o Aus ia. Re ie ed Ap il 9, 2021, om h ps:// www.oenb.a /dam/jc :66356a63-b720-4272- 8 11- 51879e91386/ eei_2017_q2_s udies_ essle _lis _messne .pd Fessle , P., & Schü z, M. (2018). P i a e Weal h ac oss Eu opean Coun ies: The Role o Income, Inhe i ance and he Wel a e S a e. Jou nal o Human De elopmen and Capabili ies, 19(4), 521–549. h ps://doi.o g/10 .1080/19452829.2018.1507422 F iedline, T., Masa, R. D., & Chowa, G. A. N. (2014). T ans o ming Weal h: Using he In e se Hype bolic Sine (IHS) and Splines o P edic You h’s Ma h Achie emen . Social Science Resea ch, 49, 264–287. h ps://doi. o g/10.1016/j.ss esea ch.2014.08.018 EM_3_2021.indd 204 8.9.2021 9:58:23 205 3, XXIV, 2021 Finance G ejcz, K., & Żółkiewski, Z. (2017). Household Weal h in Poland: The Resul s o a New Su ey o Household Finance. Bank i K edy , 48(3), 295–326. G ube , J., Jensen, A., & Kle en, H. (2017). Do People Respond o he Mo gage In e es Deduc ion? E idence om Denma k (NBER Wo king Pape 23600). Camb idge: MA: Na ional Bu eau o Economic Resea ch. Re ie ed Janua y 13, 2021, om h ps://www. nbe .o g/sys em/ iles/wo king_pape s/w23600/ w23600.pd Handayani, D., Salamah, U., & Yusacc, R. N. (2016). Indeb edness and Subjec i e Financial Wel a e o Households in Indonesia. Economy and Finance Indonesia, 62(2), 78–87. h p://e i. ui.ac.id/index.php/e i/a icle/ iew/549/566 Haq, W., Ismail, N. A., Sa a , N. M., & Wa son, D. (2018). Household Deb in Di e en Age Coho s: A Mul ile el S udy. Cogen Economics & Finance, 6(1), 45. h ps://doi.o g /10.1080/23322039.2018.1455406 Hua, T. X., & E eyge s, G. (2019). Applying Quan ile Reg ession o De e mine he E ec s o Household Cha ac e is ics on Household Sa ings Ra es in Vie nam. Jou nal o Asian Business and Economic S udies, 27(2), 175–193. h ps://doi.o g/10.1108/ JABES-06-2019-0053 In e na ional Mone a y Fund. (2020). Household Deb , Loans and Deb Secu i ies, Pe cen o GDP. Washing on, DC: IMF. Re ie ed Janua y 13, 2021, om h ps://www. im .o g/ex e nal/da amappe /HH_LS@GDD/ USA?zoom=USA&highligh =USA Keigh ley, M. P. (2020). An Economic Analysis o he Mo gage In e es Tax Deduc ion (CRS Repo No. R46429). Washing on, DC: Cong essional Resea ch Se ice. Re ie ed Janua y 13, 2021, om h ps:// as.o g/sgp/c s/ misc/R46429.pd Killewald, A., P e e , F. T., & Schachne , J. N. (2018). Weal h Inequali y and Accumula ion. Annual Re iew o Sociology, 43, 379–404. h ps://doi.o g/10.1146/annu e - soc-060116-053331 Koenke , R., & Basse , G. (1978). Reg essions Quan iles. Econome ica, 46(1), 33–50. h ps://doi.o g/10.2307/1913643 Kukk, M. (2017). How Does Household Deb A ec Financial Asse Holdings? E idence om Eu o A ea Coun ies. S udies in Economics and Finance, 34(2), 194–212. h ps://doi. o g/10.1108/se -02-2016-0031 Lee, M. P., & Sab i, M. F. (2017). Re iew o Financial Vulne abili y S udies. A chi es o Business Resea ch, 5(2), 127–134. h ps://doi. o g/10.14738/ab .52.2784 Leika, M., & Ma che ini, D. (2017). A Gene alized F amewo k o he Assessmen o Household Financial Vulne abili y (IMF Wo king Pape WP/17/228). Washing on, DC: IMF. Re ie ed Ap il 4, 2021, om h ps://www.im . o g/en/Publica ions/WP/Issues/2017/11/07/A- Gene alized-F amewo k- o - he-Assessmen - o -Household-Financial-Vulne abili y-45297 Midões, C., & Se é, M. (2020). Li ing wi h Reduced Income: an Analysis o Household Financial Vulne abili y unde COVID-19 (Wo king Pape No 20/08). An we p: Cen um oo Sociaal Beleid – He man Deleeck. Re- ie ed Ap il 4, 2021, om h ps://medialib a y. uan we pen.be/ iles/57001/33536a0e-e1b1- 48a6-b755-811b 32a8ea3.pd Modigliani, F. (1986). The Li e Cycle Hypo hesis o Sa ing, he Demand o Weal h and he Supply o Capi al. Social Resea ch: An In e na ional Qua e ly, 33(2), 160–217. N salaze, L., & Ikhide, S. (2016). Household O e -indeb edness: Unde s anding i s Ex en and Cha ac e is ics o hose A ec ed. Jou nal o Social Sciences, 48(1–2), 79–93. h ps://doi. o g/10.1080/09718923.2016.11893573 Noe hidaja i, S., Pu woko, A. B., We daning yas, H., Kamil, A. I., & Da an o, T. (2021). Household Financial Vulne abili y in Indonesia: Measu emen and De e minan s. Economic Modelling, 96, 433–444. h ps://doi. o g/10.1016/j.econmod.2020.03.028 Nölke, A. (2016). Economic Causes o he Eu ozone C isis: The Analy ical Con ibu ion o Compa a i e Capi alism. Socio-Economic Re iew, 14(1), 141–161. h ps://doi. o g/10.1093/se /mw 031 Noma ye, A., & Phi i, A. (2017). In es iga ing he Mac oeconomic De e minan s o Household Deb in Sou h A ica (MPRA Pape No. 83303). Munich: Munich Pe sonal RePEc A chi e. Re ie ed Janua y 21, 2021, om h ps:// mp a.ub.uni-muenchen.de/83303/1/MPRA_ pape _83303.pd Pa elka, T., & Lös e , T. (2016). The De elopmen o Unemploymen in he Eu opean Union’s Labou Ma ke Due o he Recen Economic C isis, Using Clus e Analysis. In M. H. Bilgin, H. Danis, E. Demi , & U. Can (Eds.), Business Challenges in he Changing Economic Landscape (Vol. 1, pp. 323–337). EM_3_2021.indd 205 8.9.2021 9:58:23 206 2021, XXIV, 3 Finance Cham: Sp inge . h ps://doi.o g/10.1007/978-3- 319-22596-8_23 Rahim, H. A. (2011). Fac o s Con ibu ing o Financial S abili y o U ban and Ru al Families. Pe anika Jou nal o Social Science and Humani ies, 19(1), 99–112. R Co e Team. (2018). R: Language and En i onmen o S a is ical Compu ing. Vienna: R Founda ion o S a is ical Compu ing. Re ie ed Janua y 13, 2021, om h ps:// www.R-p ojec .o g Sachin, B. S., Rajasheka , V., & Ramesh, B. (2018). Fes i al Spending Pa e n: I s Impac on Financial Vulne abili y o Ru al Households. Social Wo k Foo P in , 7(5), 48–57. Ri e o, J. I., & San oman, G. (2020). Households Indeb edness: The Role o Income and Business Owne ship in a Small Eme ging Coun y (Wo king Pape No. 20). Mon e ideo, Uk aine: Udela FCS-DE. Re ie ed Janua y 21, 2021, om h ps://www.colib i.udela .edu. uy/jspui/bi s eam/20.500.12008/26107/1/ DT%20E%202020-08.pd S a is a. (2021). To al Financial Asse s o U.S. Households 2000–2020. Financial balance shee s. New Yo k, NY: S a is a. Re ie ed Ap il 15, 2021, om h ps://www. s a is a.com/s a is ics/188542/ inancial-asse s- o -households-in- he-us/ Te aneo, M. (2018). Households’ Financial Vulne abili y in Sou he n Eu ope. Jou nal o Economic S udies, 45(3), 521–542. h ps://doi. o g/10.1108/JES-08-2016-0162 Togba, E. L. (2012). Mic o inance and Households Access o C edi : E idence om Cô e d’I oi e. S uc u al Change and Economic Dynamics, 23(4), 473–486. h ps://doi. o g/10.1016/j.s ueco.2012.08.002 T eano , M. (2016). The E ec s o Financial Vulne abili y and Mo he s’ Emo ional Dis ess on Child Social, Emo ional and Beha iou al Well-Being: A S uc u al Equa ion Model. Sociology, 50(4), 673–694. h ps://doi. o g/10.1177/0038038515570144 Waldmann, E. (2018). Quan ile eg ession: A Sho S o y on How and Why. S a is ical Modelling, 18(3–4), 203–218. h ps://doi. o g/10.1177/1471082x18759142 Walugembe, P., Wamala, R., Misinde, C., & La ok, R. (2019). Child and Household Social- Economic Vulne abili y: De e minan s T ansi ion om Mode a e and C i ical Vulne abili y Le els in Ru al Uganda. Childhood Vulne abili y Jou nal, 2(29), 29–50. h ps://doi.o g/10.1007/ s41255-020-00011-y Wildaue , R. (2016). De e minan s o US Household Deb : New E idence om he SCF (Wo king Pape s PKWP 1608). G eenwich: Pos -Keynesian Economics Socie y. Re ie ed Janua y 13, 2021, om h p://www. pos keynesian.ne /downloads/wo king-pape s/ PKWP1608.pd Yildi imm, T. (2015). Did he Eu o T igge he Eu opean Deb C ises? Jou nal o In e na ional S udies, 8(2), 43–51. h ps://doi. o g/10.14254/2071-8330.2015/8-2/4 Yuso , S. A., Rokis, R., & Wan Jusoh, W. J. (2015). Financial F agili y o U ban Households in Malaysia. Ju nal Ekonomi Malaysia, 49(1), 15–24. h ps://doi.o g/10.17576/JEM-2015- 4901-02 Zeileis, A., Lumley, T., Be ge , S., & G aham, N. (2004). Econome ic Compu ing wi h HC and HAC Co a iance Ma ix Es ima o s. Jou nal o S a is ical So wa e, 11(10), 17. h ps://doi. o g/10.18637/jss. 011.i10 EM_3_2021.indd 206 8.9.2021 9:58:23 207 3, XXIV, 2021 Finance Appendix Fi s wa e (HFCS 2010) Second wa e (HFCS 2014) Thi d wa e (HFCS 2017) Aus ia, Belgium, Cyp us, Ge many, Spain, Finland, F ance, G eece, I aly, Mal a, Luxembou g, he Ne he lands, Po ugal, Slo enia, Slo akia Aus ia, Belgium, Cyp us, Ge many, Spain, Finland, F ance, G eece, I aly, Mal a, Luxembou g, he Ne he lands, Po ugal, Slo enia, Slo akia, Poland, I eland, Hunga y, Es onia, Li huania Aus ia, Belgium, Cyp us, Ge many, Spain, Finland, F ance, G eece, I aly, Mal a, Luxembou g, he Ne he lands, Po ugal, Slo enia, Slo akia, Poland, I eland, Hunga y, Es onia, Li huania, C oa ia, La ia Sou ce: HFCS, own No e: Coun ies w i en in bold pa icipa ed in he su ey o he i s ime. Tab. A1: Coun ies pa icipa ed in he HFCS EM_3_2021.indd 207 8.9.2021 9:58:23