So-called “hand-to-mouth” households are characterised by a very high marginal propensity to consume or, in other words, a consumption pattern that is more sensitive to temporary shocks and transfers affecting income. Most low-income households have meagre savings and so are obliged to pass on income fluctuations to consumption. These households are the “poor hand-to-mouth”. However, a second category of such households exists, namely the “wealthy hand-to-mouth”. Th…
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NBB Working Paper, 2023, 432: Poor and wealthy hand-to-mouth households in Belgium
Oorspronkelijke titel: Poor and wealthy hand-to-mouth households in Belgium
Bron: nbb.be
02-02-2023
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