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Working PaPer SerieS

no

1655 / March 2014

The Di

ST ribu T ion of Weal T h an D T he Marginal Pro P en S i T y T o c on S u M eChristopher D. Carroll, Jiri Slacalek and Kiichi Tokuoka In 2014 all ECB publications feature a motif taken from the €20 banknote. noTe: This Working Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are houSeholD finance anD con S u MPT ion ne TWork

© european central bank, 2014

address Kaiserstrasse 29, 60311 Frankfurt am Main, Germany

Postal address

Postfach 16 03 19, 60066 Frankfurt am Main, Germany

Telephone

+49 69 1344 0
internet http://www.ecb.europa.eu fax +49 69 1344 6000

All rights reserved.

iSSn 1725-2806 (online) eu catalogue no

QB-AR-14-029-EN-N (online)

Any reproduction, publication and reprint in the form of a different publication, whether printed or produced electronically, in whole

or in part, is permitted only with the explicit written authorisation of the ECB or the authors.

This paper can be downloaded without charge from http://www.ecb.europa.eu or from the Social Science Research Network electronic

library at http://ssrn.com/abstract_id=2404862.

Information on all of the papers published in the ECB Working Paper Series can be found on the ECB"s website, http://www.ecb.

household finance and consumption network

This paper contains research conducted within the Household Finance and Consumption Network (HFCN). The HFCN consists of

survey specialists, statisticians and economists from the ECB, the national central banks of the Eurosystem and a number of national

statistical institutes. The HFCN is chaired by Gabriel Fagan (ECB) and Carlos Sánchez Muñoz (ECB). Mic hael Haliassos (Goethe University Frankfurt ),

Tullio Jappelli (University of Naples Federico II), Arthur Kennickell (Federal Reserve Board) and Peter Tufano (University of Oxford)

act as external consultants, and Sébastien Pérez Duarte (ECB) an d Jiri Slacalek (ECB) as Secretaries.

HFCN aims at studying in depth the micro-level structural information on euro area households" assets and liabilities. The objectives

of the network are:

1) understanding economic behaviour of individual households, developments in aggregate variables and the interactions between the

two;

2) evaluating the impact of shocks, policies and institutional changes

on household portfolios and other variables;

3) understanding the implications of heterogeneity for aggregate variab

les;

4) estimating choices of different households and their reaction to economic shocks;

5) building and calibrating realistic economic models incorporating het

erogeneous agents;

The refereeing process of this paper has been co-ordinated by a team composed of Gabriel Fagan (ECB), Pirmin Fessler (Oesterreichische

Nationalbank), Michalis Haliassos (Goethe University Frankfurt) , Tullio Jappelli (University of Naples Federico II), Sébastien

PérezDuarte (ECB), Jiri Slacalek (ECB), Federica Teppa (De Nederlandsche Bank), Peter Tufano (Oxford University) and Philip

Vermeulen (ECB).

The paper is released in order to make the results of HFCN research generally available, in preliminary form, to encourage comments

of the ESCB. acknowledgements

We thank Michael Ehrmann, Dirk Krueger, Jonathan Parker, Giorgio Primiceri, Gianluca Violante and numerous seminar audiences

for helpful comments. The views presented in this paper are those of the authors, and should not be attributed to the European Central

Bank or the Japanese Ministry of Finance.

christopher D. carroll Department of Economics, Johns Hopkins University, Baltimore, MD; e-mail: ccarroll@jhu.edu; homepage: http://econ.jhu.edu/people/ccarroll/

Jiri Slacalek

European Central Bank; e-mail: jiri.slacalek@ecb.europa.eu; homepage: ht tp://www.slacalek.com/ kiichi Tokuoka Ministry of Finance, Tokyo, Japan; e-mail: kiichi.tokuoka@mof.go.jp ?0??????? ???? ????? ??????? ?0:25? ?????? ???? ????? ??? ?????? W ?????t? y yyt=pttWt: p t=pt1 t;??? W t= (1)Zt(KKKt=`LLLt);??? L

LLt=Ptt;???

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KK(`LLL)1;????

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0:9888 0:9839 0:9570 0:9864 0:9631

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