Consumption patterns of indebted households
Unravelling the Relevance of Fiscal Policy
Bibliographic Data
| ID | 6429342 |
|---|---|
| Authors | António Afonso (0000-0002-6926-2653, University of Lisbon, corresponding author), Eduardo De Sá Fortes Leitão Rodrigues (0000-0002-1547-8838, Universidade Federal Rural do Rio de Janeiro) |
| Year | 2024 |
| Volume | 19 |
| Issue | 1 |
| Pages | 31-57 |
| Publication date | 2024-10-14 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Journal of Economic Policy Studies (JOURNAL) |
| Journal identifiers | ISSN: 2524-4892 • E-ISSN: 1881-4387 |
| Publisher | Springer Science+Business Media (PUBLISHER • DE) |
| DOI | 10.1007/s42495-024-00141-3 |
| OpenAlex | W4403369171 |
| Language | EN |
| References cited | 39 |
We have investigated the influence of fiscal instruments, notably taxes and government spending, on household consumption in two different samples and two measures of household debt to provide a comprehensive analysis of the topic. We used dynamic panel models and the Generalised Method of Moments (GMM) approach for 24 and 32 advanced and emerging countries from 1995 to 2020. Our findings show that fiscal impulses increase private consumption. However, when households are highly indebted, the effects are different, and the increase in public spending or the reduced taxes discourages household consumption compared to the baseline (lower debt) group. These results suggest a precautionary effect
Consumption (sociology · Economic geography · Economics · Fiscal policy · Macroeconomics · Political science · Relevance (law · Social science · Sociology · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics · Housing, Finance, and Neoliberalism
Saving and Uncertainty
Bank lending during the financial crisis of 2008
An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output
Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors
Understanding the Effects of Government Spending on Consumption
Formulation and estimation of dynamic models using panel data
Impatience and Uncertainty
Frames of Mind in Intertemporal Choice
How to do Xtabond2
Some Tests of Specification for Panel Data
Another look at the instrumental variable estimation of error-components models
The roles of technology and Kyoto Protocol in energy transition towards COP26 targets
Macroeconomics
Finance and Business Cycles
Ten Years After the Financial Crisis
| Citation velocity | historical |
|---|---|
| Highly cited | No |