Household resilience to adverse macroeconomic shocks: evidence from Czech microdata

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F16%3A10359267" target="_blank" >RIV/00216208:11230/16:10359267 - isvavai.cz</a>

Result on the web

<a href="http://dx.doi.org/10.1080/02692171.2015.1105937" target="_blank" >http://dx.doi.org/10.1080/02692171.2015.1105937</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1080/02692171.2015.1105937" target="_blank" >10.1080/02692171.2015.1105937</a>

Result language

angličtina

Original language name

Household resilience to adverse macroeconomic shocks: evidence from Czech microdata

Original language description

We develop a methodology for identifying financially distressed households and use it for testing the responses to shocks to the unemployment rate, the interest rate and prices of essential expenditure in the Czech Republic. We extend the approach of Johansson and Persson (2006) for Sweden and Albacete and Fessler (2010) for Austria in the literature to allow for full labour market transitions between employment and unemployment, and, due to data availability, to account for heads and spouses within households. This improvement may lead to a higher response of household distress incidence, due to the unemployment rate shock, than in both Sweden and Austria, while the effects due to the interest rate shock are of similar size as in Austria. We illustrate the use of our approach for stress testing households&apos; ability to pay their debts using macroeconomic scenarios from the CNB&apos;s official forecast and from the CNB&apos;s Financial Stability Report. The results highlight the importance of using micro-level datasets in the analysis of household distress incidence, as the impact of shocks is more pronounced among lower-income households.

Czech name

—

Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

—

OECD FORD branch

50201 - Economic Theory

Project

<a href="/en/project/GA14-02108S" target="_blank" >GA14-02108S: The nexus between sovereign and bank crises</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2016

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

International Review of Applied Economics

ISSN

0269-2171

e-ISSN

—

Volume of the periodical

30

Issue of the periodical within the volume

3

Country of publishing house

GB - UNITED KINGDOM

Number of pages

26

Pages from-to

377-402

UT code for WoS article

000371804400005

EID of the result in the Scopus database

2-s2.0-84960306639