{"id":453896,"date":"2026-10-29T09:34:00","date_gmt":"2026-10-29T08:34:00","guid":{"rendered":""},"modified":"2026-10-29T10:35:02","modified_gmt":"2026-10-29T09:35:02","slug":"household-heterogeneity-and-monetary-policy-amplification-in-austria","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/453896\/","title":{"rendered":"Household Heterogeneity and Monetary Policy Amplification in Austria"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-453896","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"We extend Auclert's (2019) sufficient-statistics decomposition of the consumption response to monetary policy to an open economy in which households hold foreign assets and liabilities. Each foreign channel then splits into a level component, driven by the aggregate foreign position, and a redistribution component, driven by how foreign exposures are distributed across households. Using Austrian household survey data, we find that redistribution raises the consumption response to a rate cut by 18 percent relative to a redistribution-free benchmark, mostly through households with variable rate mortgages. Income-GDP elasticities from quantile regressions decline steeply with income, but because marginal propensities to consume (MPC) are only weakly related to income, the earnings-heterogeneity channel adds about 3 percent with a profile based on personal gross earnings and 0.4 and 0.5 percent with household-income profiles. In an illustrative calibration, the foreign channels add about 13 percent, mostly as a level effect from the revaluation of net foreign assets that a representative household would also experience. Relative to an open-economy redistribution-free benchmark, heterogeneity amplifies the response by 17.5 percent.","onlinedate":"2026-10-29 08:34:01","lang":"English","publication_series":"","publication_date":"20261029","publication_date_year":"","publication_date_full":true,"publication_num_pages":"48","keywords":"[\"MPC\",\"Household balance sheets\",\"Monetary policy transmission\",\"Consumption dynamics\",\"Open economy\",\"Net foreign assets\"]","jelcodes":"[\"D12\",\"D31\",\"E12\",\"F41\"]","related_publications":"[]","pdf":453908,"zip":null,"link":"","monthly_report":true,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"736","journal":"WIFO Working Papers","publisher":"","invisible":false,"external":false,"embargo_date":null,"types":[44410],"research_groups":[3500],"collaboration":"","persons":[3497,3641,434448],"persons_data":"[{\"personId\":3497,\"personName\":\"Atanas Pekanov\",\"organisationNames\":[]},{\"personId\":3641,\"personName\":\"Serguei Kaniovski\",\"organisationNames\":[]},{\"personId\":434448,\"personName\":\"Elisabeth Hofbauer\",\"organisationNames\":[]}]","clients":[10660],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Pekanov, A.<\\\/span><span>, Kaniovski, S.<\\\/span><span>, &amp; Hofbauer, E.<\\\/span> (2026). <span>Household Heterogeneity and Monetary Policy Amplification in Austria<\\\/span>. <span><em>WIFO Working Papers<\\\/em><\\\/span>, (736).<\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Pekanov A<\\\/span><span>, Kaniovski S<\\\/span><span>, Hofbauer E<\\\/span>. <span class=\\\"title\\\"><span>Household Heterogeneity and Monetary Policy Amplification in Austria<\\\/span><\\\/span>. <span>WIFO Working Papers<\\\/span>. 2026 Oct 29;(736).<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{85dd374adc1c4512bab0441544e603b3,<\\\/div><div>  title    = \\\"Household Heterogeneity and Monetary Policy Amplification in Austria\\\",<\\\/div><div>  abstract = \\\"We extend Auclert's (2019) sufficient-statistics decomposition of the consumption response to monetary policy to an open economy in which households hold foreign assets and liabilities. Each foreign channel then splits into a level component, driven by the aggregate foreign position, and a redistribution component, driven by how foreign exposures are distributed across households. Using Austrian household survey data, we find that redistribution raises the consumption response to a rate cut by 18 percent relative to a redistribution-free benchmark, mostly through households with variable rate mortgages. Income-GDP elasticities from quantile regressions decline steeply with income, but because marginal propensities to consume (MPC) are only weakly related to income, the earnings-heterogeneity channel adds about 3 percent with a profile based on personal gross earnings and 0.4 and 0.5 percent with household-income profiles. In an illustrative calibration, the foreign channels add about 13 percent, mostly as a level effect from the revaluation of net foreign assets that a representative household would also experience. Relative to an open-economy redistribution-free benchmark, heterogeneity amplifies the response by 17.5 percent.\\\",<\\\/div><div>  keywords = \\\"MPC, Household balance sheets, Monetary policy transmission, Consumption dynamics, Open economy, Net foreign assets\\\",<\\\/div><div>  author   = \\\"Atanas Pekanov and Serguei Kaniovski and Elisabeth Hofbauer\\\",<\\\/div><div>  year     = \\\"2026\\\",<\\\/div><div>  month    = oct,<\\\/div><div>  day      = \\\"29\\\",<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  journal  = \\\"WIFO Working Papers\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - Household Heterogeneity and Monetary Policy Amplification in Austria<\\\/p><p>AU  - Pekanov, Atanas<\\\/p><p>AU  - Kaniovski, Serguei<\\\/p><p>AU  - Hofbauer, Elisabeth<\\\/p><p>PY  - 2026\\\/10\\\/29<\\\/p><p>Y1  - 2026\\\/10\\\/29<\\\/p><p>N2  - We extend Auclert's (2019) sufficient-statistics decomposition of the consumption response to monetary policy to an open economy in which households hold foreign assets and liabilities. Each foreign channel then splits into a level component, driven by the aggregate foreign position, and a redistribution component, driven by how foreign exposures are distributed across households. Using Austrian household survey data, we find that redistribution raises the consumption response to a rate cut by 18 percent relative to a redistribution-free benchmark, mostly through households with variable rate mortgages. Income-GDP elasticities from quantile regressions decline steeply with income, but because marginal propensities to consume (MPC) are only weakly related to income, the earnings-heterogeneity channel adds about 3 percent with a profile based on personal gross earnings and 0.4 and 0.5 percent with household-income profiles. In an illustrative calibration, the foreign channels add about 13 percent, mostly as a level effect from the revaluation of net foreign assets that a representative household would also experience. Relative to an open-economy redistribution-free benchmark, heterogeneity amplifies the response by 17.5 percent.<\\\/p><p>AB  - We extend Auclert's (2019) sufficient-statistics decomposition of the consumption response to monetary policy to an open economy in which households hold foreign assets and liabilities. Each foreign channel then splits into a level component, driven by the aggregate foreign position, and a redistribution component, driven by how foreign exposures are distributed across households. Using Austrian household survey data, we find that redistribution raises the consumption response to a rate cut by 18 percent relative to a redistribution-free benchmark, mostly through households with variable rate mortgages. Income-GDP elasticities from quantile regressions decline steeply with income, but because marginal propensities to consume (MPC) are only weakly related to income, the earnings-heterogeneity channel adds about 3 percent with a profile based on personal gross earnings and 0.4 and 0.5 percent with household-income profiles. In an illustrative calibration, the foreign channels add about 13 percent, mostly as a level effect from the revaluation of net foreign assets that a representative household would also experience. Relative to an open-economy redistribution-free benchmark, heterogeneity amplifies the response by 17.5 percent.<\\\/p><p>KW  - MPC<\\\/p><p>KW  - Household balance sheets<\\\/p><p>KW  - Monetary policy transmission<\\\/p><p>KW  - Consumption dynamics<\\\/p><p>KW  - Open economy<\\\/p><p>KW  - Net foreign assets<\\\/p><p>M3  - WIFO series<\\\/p><p>JO  - WIFO Working Papers<\\\/p><p>JF  - WIFO Working Papers<\\\/p><p>ER  - <\\\/p><\\\/div>\"}","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.3 (Yoast SEO v28.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Household Heterogeneity and Monetary Policy Amplification in Austria - WIFO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.wifo.ac.at\/en\/publication\/453896\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Household Heterogeneity and Monetary Policy Amplification in Austria\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.wifo.ac.at\/en\/publication\/453896\/\" \/>\n<meta property=\"og:site_name\" content=\"WIFO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/WIFOat\/\" \/>\n<meta property=\"article:modified_time\" content=\"2026-10-29T09:35:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.wifo.ac.at\/wp-content\/uploads\/2024\/05\/WIFO-Gebaeude-FotoAlexanderMueller-www.alexandermueller.at-IMG_6326-Bearbeitet-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@WIFOat\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/453896\\\/\",\"url\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/453896\\\/\",\"name\":\"Household Heterogeneity and Monetary Policy Amplification in Austria - 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