-simulations to investigate heterogeneity in the euro area. We quantify shocks to wealth, income and financial pressure faced by … affected the income-poor, while the declining wealth the income-rich. Although borrowers benefited from the substantial … decrease in interest rates, debt service-income and debt-income ratios for poor households went up as they faced falling …

- relative to older borrowers has played a major role in easing the debt repayment burden in the presence of large income shocks …. Notwithstanding historically low interest rates, we show that income shocks are the main factor contributing to mortgage repayment …

decomposing disposable income into labour, property and transfer income is essential for understanding and forecasting consumption …. Finally, substantial crosscountry heterogeneity in marginal propensities to consume out of income and wealth components calls …

approach is the parameterisation of the information content regarding future income changes. In addition to the information … regarding time series properties of the historical development of labour income, consumers have also period-specific information … on future income realisations. Estimation results support the hypothesis that, although front-loaded, consumers have a …

-separabilities, "superior information", and income shocks of different nature, both transitory and permanent. The results provide evidence for …

In an overlapping generations maximization framework with consumers, whose information on uncertain future income …