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Consumption patterns of indebted households

Unravelling the Relevance of Fiscal Policy

Dados Bibliográficos

ID6429342
AutoresAntónio Afonso (0000-0002-6926-2653, University of Lisbon, autor correspondente), Eduardo De Sá Fortes Leitão Rodrigues (0000-0002-1547-8838, Universidade Federal Rural do Rio de Janeiro)
Ano2024
Volume19
Fascículo1
Páginas31-57
Data de publicação2024-10-14
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoInternational Journal of Economic Policy Studies (JOURNAL)
Identificadores do periódicoISSN: 2524-4892 • E-ISSN: 1881-4387
EditoraSpringer Science+Business Media (PUBLISHER • DE)
DOI10.1007/s42495-024-00141-3
OpenAlexW4403369171
IdiomaEN
Referências citadas39

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

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