Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/210332 
Year of Publication: 
2016
Series/Report no.: 
Staff Memo No. 19/2016
Publisher: 
Norges Bank, Oslo
Abstract: 
On average, Norwegian households are highly indebted and their wealth is concentrated in housing. Changes in income, interest rates or house prices may cause significant adjustments in saving and consumption. This paper uses administrative register data on income and wealth to derive measures of saving and consumption expenditure. Stylised facts on the distribution across households are presented. The data are used to shed light on the risk of a drop in consumption in the event of negative shocks. We find that, on average, households have financial buffers that can significantly dampen the effect of a transitory shock. Buffers have increased in line with higher debt levels. If households' ability to access credit markets should be impaired, or if their willingness to finance consumption by new borrowing is weakened, that could have a pronounced impact on consumption expenditure.
Persistent Identifier of the first edition: 
ISBN: 
978-82-7553-941-8
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Research Report
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