Arbeitspapier
The anatomy of consumption in a household foreign currency debt crisis
How do households adjust to a large debt shock? This paper studies household responses to a revaluation of foreign currency household debt during a large depreciation in Hungary. Relative to similar local currency debtors, foreign currency debtors reduce consumption expenditures approximately one-for-one with increased debt service, suggesting binding liquidity constraints. Foreign currency debtors reduce both the quantity and quality of expenditures, consistent with nonhomothetic preferences and a "flight from quality." Debt revaluation has no effect on labor market status, hours, or earnings, but there is a small adjustment toward foreign income streams and a substantial increase in home production.
- ISBN
-
978-92-899-5320-7
- Sprache
-
Englisch
- Erschienen in
-
Series: ECB Working Paper ; No. 2733
- Klassifikation
-
Wirtschaft
Macroeconomics: Consumption; Saving; Wealth
Demand and Supply of Labor: General
- Thema
-
Marginal propensity to consume
flight from quality
home production
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Gyöngyösi, Gyîozîo
Rariga, Judit
Verner, Emil
- Ereignis
-
Veröffentlichung
- (wer)
-
European Central Bank (ECB)
- (wo)
-
Frankfurt a. M.
- (wann)
-
2022
- DOI
-
doi:10.2866/760321
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Gyöngyösi, Gyîozîo
- Rariga, Judit
- Verner, Emil
- European Central Bank (ECB)
Entstanden
- 2022
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