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Results of the Household Finance and Consumption Survey in Latvia

Author

Listed:
  • Ludmila Fadejeva

    (Bank of Latvia)

  • Janis Lapins

    (Bank of Latvia)

  • Liva Zorgenfreija

    (Bank of Latvia)

Abstract
This paper presents an overview of the main results of the Household Finance and Consumption Survey in Latvia, which was conducted in 2014 and collected responses from 2 814 individuals (1 202 households). Unique data on household wealth, including their assets and liabilities, as well as income and consumption were gathered. The data this survey collects are representative of the population, and the survey is to be carried out regularly to study aggregate and distributional changes in household budgets, wealth components and inequality over time. The survey results show that households in Latvia, in comparison with those in the euro area, have much higher ownership rates of the most important household asset – the main residence (76% vs. 61% respectively). However, the median value of this asset and of total assets is markedly lower than in the euro area. On the liabilities side, only one third of Latvian households have outstanding debt – one of the lowest readings among euro area countries. Taking all components of a household balance sheet together, the median net wealth of households in Latvia is 14 200 euro, which is more than seven times smaller than that of euro area households. While the largest net wealth holdings in the euro area are owned by the households where the reference person is at a pre-retirement age, it is the young households (especially the group aged 35–44) in Latvia that own the largest amounts of net wealth and earn the highest median income.

Suggested Citation

  • Ludmila Fadejeva & Janis Lapins & Liva Zorgenfreija, 2018. "Results of the Household Finance and Consumption Survey in Latvia," Discussion Papers 2018/01, Latvijas Banka.
    • Handle: RePEc:ltv:dpaper:201801
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    File URL: https://www.macroeconomics.lv/sites/default/files/2018-10/results%20of%20the%20household%20finance%20survey%20in%20Latvia.pdf
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    References listed on IDEAS

    as
    1. The Eurosystem Household Finance and Consumption Network, 2009. "Survey data on household finance and consumption - research summary and policy use," Occasional Paper Series 100, European Central Bank.
    2. Thomas Piketty & Gabriel Zucman, 2014. "Capital is Back: Wealth-Income Ratios in Rich Countries 1700–2010," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(3), pages 1255-1310.
    3. Christopher D. Carroll & Jiri Slacalek & Kiichi Tokuoka, 2014. "The Distribution of Wealth and the MPC: Implications of New European Data," American Economic Review, American Economic Association, vol. 104(5), pages 107-111, May.
    4. Nicolas Albacete & Pirmin Fessler, 2010. "Stress Testing Austrian Households," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 19, pages 72-91.
    5. Ehrmann, Michael & Ziegelmeyer, Michael, 2014. "Household Risk Management and Actual Mortgage Choice in the Euro Area," MEA discussion paper series 201406, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    6. Nicolas Albacete & Peter Lindner, 2013. "Household Vulnerability in Austria – A Microeconomic Analysis Based on the Household Finance and Consumption Survey," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 25, pages 57-73.
    7. Adele Atkinson & Flore-Anne Messy & Lila Rabinovich & Joanne Yoong, 2015. "Financial Education for Long-term Savings and Investments: Review of Research and Literature," OECD Working Papers on Finance, Insurance and Private Pensions 39, OECD Publishing.
    8. Mikus Arins & Nadezda Sinenko & Laura Laube, 2014. "Survey-Based Assessment of Household Borrowers' Financial Vulnerability," Discussion Papers 2014/01, Latvijas Banka.
    9. Karlis Vilerts & Olegs Krasnopjorovs & Edgars Brekis, 2015. "Does Education Affect Wages During and After Economic Crisis? Evidence from Latvia (2006–2012)," Working Papers 2015/03, Latvijas Banka.
    10. repec:hal:pseose:halshs-01109372 is not listed on IDEAS
    11. Eurosystem Household Finance and Consumption Network, 2013. "The Eurosystem Household Finance and Consumption Survey - Results from the first wave," Statistics Paper Series 2, European Central Bank.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Ludmila Fadejeva & Anete Migale & Mikelis Zondaks, 2020. "Household Finance and Consumption Survey 2017 in Latvia," Discussion Papers 2020/01, Latvijas Banka.
    2. Ludmila Fadejeva & Olegs Tkacevs, 2021. "Are Tax-Favoured Savings Plans Effective in Raising Private Savings?," Discussion Papers 2021/01, Latvijas Banka.

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    More about this item

    Keywords

    household finance and consumption survey; Latvia; assets; liabilities; net wealth; financial fragility; income; consumption;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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