Do Credit Supply and Unemployment Risk Matter for Household Saving? Evidence from Poland

This paper contributes to the literature on the effects of uncertainty on household saving – a long-standing and extensively explored topic yet leaving a number of issues inconclusive. It concentrates on the labor income uncertainty by addressing saving against unemployment risk in terms of changes in credit supply and households’ financial wealth. Time series analysis uses dataset of quarterly observations from 2003 Q4 to 2019 Q3 for Poland. It provides empirical evidence of the negative relationship of changes in households’ financial wealth and credit availability with the household propensity to save, in line with the buffer saving model. Furthermore, it contributes to the discussion on the choice of uncertainty measures referring to the labor market with a recommendation to employ the subjective (perceived) unemployment expectation index rather than the objective unemployment rate. These results are meaningful for policy implications. They emphasize the role of credit availability for household consumption/saving decisions. In case of expansionary monetary policy and making credit easier to acquire for households, all other things equal, a negative effect on the household saving rate may be expected. This poses a question about the risk of households’ overreliance on credit and therefore about their financial stability in emergency situations.

Research on the Influencing Factors of Purchasing Internet Financial Wealth Management Products Based on AHP

Internet financial wealth management product (IFWMP) has recently been one of the most gained popularity. There are limited quantitative research on IFWMP which can help customers to choose products based on the significance of each factor. In this paper, a multi-criteria decision-making model for IFWMP was developed, namely the analytic hierarchy process (AHP) which is commonly used to make decisions for unstructured problems through quantifying weights of each criterion. This paper investigated ten influential factors relevant to the purchase of IFWMP and analyzed the frequency of collected response to show the significance of the factors. Based on the quantified weights, the results of the research indicated that compatibility, product liquidity, perceived ease of use, and perceived usefulness affected investors purchasing behaviors and that every investor should pay great attention to.

Consumption, personal income, financial wealth, housing wealth, and long-term interest rates: a panel cointegration approach for 50 US states

This study investigates the long-run and short-run relationship between consumption, income, financial and housing wealth, and a long-term interest rate for the 50 US states. Using an updated set of quarterly data from 1975 to 2018, we perform panel cointegration analysis allowing for cross-sectional dependence. We obtain the following results. First, there is strong evidence for cointegration among consumption and its determinants. Second, estimates of the housing wealth and financial wealth elasticity of consumption range from 0.072 to 0.115 and 0.044 to 0.080, respectively. Finally, Granger causality tests show that there is a bidirectional short-term causality between per capita consumption, income, and financial wealth in the short run and between all the variables in the long run.

Research on the Influencing Factors of Purchasing Internet Financial Wealth Management Products based on AHP

Internet financial wealth management product(IFWMP) has recently been one of the most popularity. There is limited quantitative research on IFWMP which can helps customers to choose the products based on the significance of each factor. In the paper, a multi-criteria decision-making model of IFWMP was developed, namely analytic hierarchy process (AHP) which is used to make decisions to the unstructured problems through quantifying weights of each criterion. This paper investigated ten influential factors relevant to the purchase of IFWMP and analyzed the frequency of collected responds to show the significance of factors. Based on the quantified weights, the result of the research indicated that compatibility, product liquidity, perceived ease of use and perceived usefulness affect the investors purchasing behaviors most that every investors should pay great attention to.

Financialisation and the Portuguese private consumption: two contradictory effects?

ABSTRACT This paper makes an empirical evaluation of the relationship between financialisation and the Portuguese private consumption by performing a time series econometric analysis from the first quarter of 1996 to the third quarter of 2019. Framed within the post-Keynesian literature, financialisation has two contradictory effects on private consumption. The first one corresponds to the fall in the households’ labour income, which favours a deceleration of private consumption. The second one corresponds to the increase of households’ debt and the increase of households’ financial and housing wealth, which favours an acceleration of private consumption. The global net effect of financialisation tends to be positive because the beneficial wealth effect suppresses the harmful income effect. We estimated a private consumption equation that includes four control variables (unemployment rate, inflation rate, short-term interest rate and long-term interest rate) and three variables linked to financialisation (labour income, net financial wealth and housing wealth). Our results confirm that labour income, net financial wealth and housing wealth are positive determinants of Portuguese private consumption. Our results also show that financialisation has represented an important driver of Portuguese private consumption, particularly due to the beneficial effects of net financial wealth.

Multi-Horizon Financial and Housing Wealth Effects across the U.S. States

We investigate for the presence of multi-horizon wealth effects across U.S. states over the period of 1975:Q2 to 2012:Q2 by utilizing multi-horizon non-causality testing and multi-horizon causality measurement. At the state/aggregate level, we document that housing wealth has more statistically significant and persistent impact on private consumption than financial wealth. We also find that state-level housing/financial wealth effects are present at long time horizons and exhibit heterogeneity across the U.S. From a policy perspective, we suggest that state-level policies may specifically utilize the housing market to support consumption and growth.

Wealth and preferences for redistribution: The effects of financial assets and home equity in 31 countries

How does wealth affect preferences for redistribution? In general, social scientists have largely neglected to study the social effects of wealth. This neglect was partially due to a dearth of data on household wealth and social outcomes, and also to greater scholarly interest in how wealth has been accumulated rather than the social effects of wealth. While we would expect household wealth to be an important component of attitudes toward inequality and social welfare policies, research in this area is scarce. In this study, the relationship between wealth and preferences for redistribution is examined in cross-national global and comparative perspective using data on 31 countries from the 2009 wave of the International Social Survey Programme (ISSP), the first wave of that study to include measures of wealth. The findings presented compare the effects of two types of wealth—financial assets and home equity—and demonstrate that there are differences in effects by asset type and by redistributive policy in question. Financial wealth is more closely associated with attitudes about income equality, while home equity is more closely associated with attitudes about unemployment benefits. Moreover, while the upper categories of financial wealth have the largest negative effects on support for income equality, it is the middle categories of home equity that are most strongly associated with opposition to unemployment benefits. Effects also differ by country, but not in patterns that theories of comparative welfare states nor political economy would adequately explain.

Financial Capital. Data and Models

The authors consider different forms of financial capital and discuss their functioning by using simple models. They then develop a formal framework that helps to understand the dramatic expansion of financial wealth (both money and financial capital) and its increasingly unequal distribution.