How household consumption has changed after an economic crisis
International Journal of Social Economics
ISSN: 0306-8293
Article publication date: 6 April 2022
Issue publication date: 15 July 2022
Abstract
Purpose
This work analyzes the economic impact of an economic crisis on consumption in Spanish households, detecting inequalities in household consumption according to the age of the main breadwinner and changes in consumption patterns. In particular, the effects of the financial crisis of 2008 on household consumption are studied and divided according to the main breadwinner's age group to obtain the economic impact of the fall in consumption in young households.
Design/methodology/approach
The input–output tables of the Spanish economy during the years 2005 and 2015 and data on household consumption based on age group have been used. Economic impact is estimated through multisector modeling, specifically a demand model expressed in monetary terms. This model allows us to obtain the direct impact on the sectors offering the demanded services and the indirect impact due to increase in intermediate demand from these sectors on the rest of them.
Findings
The results obtained show the changes in household consumption and its effects on different productive sectors, highlighting the following sectors: real estate activities, electricity, gas, steam and air conditioning supply, accommodation and food service activities and manufacturing.
Originality/value
This study measures the impact of an economic crisis on the consumption of young households, analyzing all groups of households according to the main breadwinner's age, with the added value of studying the impact of this variation on household consumption and quantifying the positive and negative impact on the different sectors of activity of the Spanish economy.
Keywords
Citation
Martínez, M.A. and Camara, A. (2022), "How household consumption has changed after an economic crisis", International Journal of Social Economics, Vol. 49 No. 8, pp. 1213-1231. https://doi.org/10.1108/IJSE-08-2021-0509
Publisher
:Emerald Publishing Limited
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