Italian Households Research Articles

Financial literacy and sustainable finance decisions among Italian households

This paper empirically investigates whether financial literacy affects people’s attitudes toward sustainability, considering the degree of knowledge on sustainable finance, sustainable development and Environmental, Social, and Governance (ESG) factors and whether this knowledge affects sustainable investment decisions. We investigate a sample of 5,000 respondents from the 2022 survey led by the Italian Financial Education Committee. We find that financial literacy is positively related to the level of knowledge of sustainable finance topics and that understanding these topics has a positive effect on several sustainable investment variables. We aim to highlight the role of financial literacy in sustainability goals and enrich the existing literature on the relationship between financial literacy and sustainable finance, providing further empirical evidence about a relationship that is not yet sufficiently explored.

Energy price increases and mitigation policies: Redistributive effects on Italian households

Between July 2021 and March 2023, the Italian government took action to support households’ and individuals’ incomes to help them cope with the exceptional energy and food prices surge, by means of both tariff and income-based fiscal policy measures. In this paper, we perform a microsimulation exercise to quantify the effects of the price increases and of the policy interventions on household expenditure and income. Our results indicate that the regressive impact of the price rises was mitigated by the fiscal measures, which also succeeded in reducing inequality, at risk of poverty and energy poverty. Furthermore, we observe the relevant role of income-based measures in the South of the country.

Adopting the fuzzy approach to analyze food poverty in Italy: A study on vulnerable households using household budget survey data

Besides international efforts to address poverty and hunger, there are still many disparities among households, therefore innovative approaches and techniques are required to address the multiple facets of poverty, especially food poverty.Given the complexity in defining this phenomenon, the fuzzy approach based on an expenditure-related metric is adopted as it provides valuable insights into the Italian food poverty situation thus improving the results generally provided using by the classical binary (or crisp) set theory.By considering the equivalised household food expenditure obtained from the 2021 Italian Household Budget Survey data, the fuzzy set approach is used to measure food poverty paying particular attention to vulnerable households at a detailed territorial level. The results show that food poverty is lower in the Northern-Central regions than in Southern Italy and highlight the vulnerability of families with children and single-parent households.

What are the Policy Drivers to Undertake Green Retrofitting Investments? The Role of Tax Incentives and Communication in Italian Households’ Decision-Making

What are the Policy Drivers to Undertake Green Retrofitting Investments? The Role of Tax Incentives and Communication in Italian Households’ Decision-Making

Statistical learning models to measure the impact of COVID-19 on financial fragility.

This paper investigates the effects of the economic shock produced by the COVID-19 outbreak and diffusion on households'. Through a survey administered to Italian households, without loss of generality, we investigate changes in financial and economic decisions and the households' ability to cope with daily purchases, repay their debt obligations and face unexpected expenses. The paper also applies a statistical learning model through a synthetic indicator for the financial vulnerability of households, integrating the relevant information on the financial literacy and education of the surveyed individuals.

The use of voluntary health insurance in the access to specialist care: Evidence from the Italian NHS

We examine whether the endorsement of voluntary health insurance (VHI) in a Beveridge-oriented healthcare system may increase the probability of visiting a specialist. We use data from the 2019 European Health Interview Survey, which includes information on demographics, socioeconomic characteristics, health status, and healthcare access of over 30,000 Italian households. We also apply data from the Health for All dataset to measure the supply of physicians at regional level.In order to account for endogeneity and unobserved heterogeneity, data is modeled through a simultaneous equation model for binary variables, specifically a trivariate recursive probit.Findings show a positive impact of VHI on the probability of accessing specialist care, after controlling for physician distribution. A socioeconomic gradient is also detected in the probability of both holding VHI and visiting a specialist, with wealthier and better educated individuals showing more likelihood to do so; these results raise concern on the equity of access granted by a Beveridge-oriented system. The role of the GP in filtering the need for care and referring patients to specialists is also recognized. Both supplier inducement effects and macroregional fixed effects are detected in the access to either category of physicians.

Measuring Households' Financial Fragilities: An analysis at the intersection of income, financial wealth, and debt†

We provide an analysis of the financial fragilities of Italian households in the 2000–2020 period, using data from the Survey on Household Income and Wealth. We comment on the recent trends of financial ill‐being, using different poverty measures, and we provide a descriptive analysis of the fragile households' characteristics. Then, we model persistence in the dynamics of the poverty statuses using different specifications of the dynamic random‐effects probit model to account for observed and latent individual heterogeneity and endogeneity of the initial conditions. A strong state dependence is found in all the considered poverty statuses, with financial and liquidity poverty being the most persistent.

Inflation and distributional impacts: Have mitigation policies been successful for vulnerable and energy poor households?

The aim of this paper is to assess the distributional impact of the 2021–23 price increase on Italian household expenditure and energy poverty. Using the microsimulation model developed by the Italian Parliamentary Budget Office, the analysis provides a comprehensive assessment of the uneven impact of inflation across the population and measures how mitigation policies have compensated for this impact. In particular, we focus on vulnerable households to examine whether energy poverty has been affected by the rise in energy prices and to what extent policies have succeeded in protecting these families. Our main findings show that in 2022, mitigation policies have stabilised the impact of inflation by compensating households for almost half of the effect of the price shock on their expenditure. Although not particularly well targeted at energy-poor households, the mitigation policies have protected households from a worsening of their energy vulnerability. However, the reduction of support measures adopted in 2023 is expected to increase the area of vulnerability, including households that are particularly sensitive to high energy costs. Finally, the behavioural response of households was also considered by estimating price elasticities of energy demand and measuring their impact on the simulated scenarios using a sensitivity approach.

Consumption and Liquidity Shocks

AbstractWe study the response of consumption to anticipated and unanticipated liquidity gains using information on gifts (occasional and recurrent) and severance pay from the Italian Household Income and Wealth survey. Consistent with standard intertemporal consumption models, we find that unanticipated income shocks affect nondurable consumption while anticipated shocks have no effect. In the former case, the marginal propensity to consume is estimated to be around 7%. We find also that this consumption response is stronger for poor households (around 10%) and negligible for rich ones.

A copula formulation for multivariate latent Markov models

AbstractWe specify a general formulation for multivariate latent Markov models for panel data, where outcomes are possibly of mixed-type (categorical, discrete, continuous). Conditionally on a time-varying discrete latent variable and covariates, the joint distribution of outcomes simultaneously observed is expressed through a parametric copula. We therefore do not make any conditional independence assumption. The observed likelihood is maximized by means of an expectation–maximization algorithm. In a simulation study, we argue how modeling the residual contemporary dependence might be crucial in order to avoid bias in the parameter estimates. We illustrate through an original application to assessment of poverty through direct and indirect indicators in a cohort of Italian households.

The Distribution and Use of Italian Households’ Savings After the Pandemic

The Distribution and Use of Italian Households’ Savings After the Pandemic

Furnishing Italian Colonialism: “Nomad” Interiors and the Habitations of the Empire

abstract: This article explores the display and circulation of furniture and decorative arts between Italy and its African colonies, and discusses the relationship between pieces conceived in the occupied territories, those defined for Italian households, and those envisioned to accompany Italians in their colonial endeavors. The circulation of these different pieces was thought to embody the “expansion of life horizons” characteristic of modernity. However, modernist designers worked alongside ethnographers through the delineation of distinct identities for the inhabitants of the Italian nation and those subjected to colonization, increasingly differentiating who was allowed to engage in the characteristically modern “expansion” and who was forced to remain fixed—as the defining hierarchy of the modern-colonial period.

The Risk of Household Socioeconomic Deprivation Related to Older Long-Term Care Needs: A Qualitative Exploratory Study in Italy and Spain

Background: Older individuals with long-term care (LTC) needs represent a risk factor for poverty and socioeconomic deprivation (SED) for households. This challenge threatens the overall sustainability of health and social care systems. Spain and Italy have a robust family-based care regime with a high level of informal long-term care. Aims: This qualitative study aims to provide empirical evidence of the socioeconomic risks for Spanish and Italian households related to long-term care needs by identifying the phenomenon’s main characteristics and suggestions for innovative policies and solutions. In particular, this qualitative study examines the opinions of experts and stakeholders from both countries to: (a) explore the relationship between LTC needs and household SED risk in Spain and Italy; (b) identify key associations between words and concepts, highlighting their specific characteristics in both countries; and (c) perform an in-depth analysis of the interviewees’ views on designing innovative policies to support households, aimed at coping with the SED risk arising from the challenges posed by meeting the LTC needs of older people and their relatives Methods: National experts and stakeholders were involved in interviews and focus groups in both countries. A linguistic and content analysis of the transcriptions produced was performed and supported by T-LAB. Results: The SED risk for households was confirmed in both countries. Informal carers, often women, contend with a higher risk of material and social deprivation. To improve the coordination and integration strategy of public LTC, policies should contrast the SED risk of households. Moreover, an innovative integrated welfare model should consider valorizing different existing resources (e.g., informal care, neighbors, and NGOs). Conclusions: Long-term care policies aimed at promoting ageing need to pay more attention to such a risk as a structural component to be addressed and tackled with more specific and effective strategies.

Is Geographical Mobility Beneficial? The Impact of the South-to-North Internal Migration on Occupational Achievement in Italy

Geographical mobility plays a crucial role in shaping demographic and social change, yet few studies have examined its impact on occupational success and the transmission of social inequality across generations. This study aims to investigate the effect of internal migration on occupational status in Italy, exploring whether men and women experience a benefit or disadvantage from South-to-North migration, and if this effect is influenced by family status and social class of origin. The research is based on the Italian Household Longitudinal Survey and utilizes a set of fixed effects linear regression panel models combined with Coarsened Exact Matching (CEM). Results show that only men benefit from migration, while women experience a disadvantage, which increases when they move after union formation and the transition to parenthood. Furthermore, the impact of geographical mobility on occupational status varies based on social class of origin only for men, with those from higher classes experiencing a much greater migration benefit than those from medium and lower classes. These findings demonstrate that geographical mobility serves as an additional source of advantage for individuals from higher social classes. The positive effect on male occupational success compounds with family-related benefits, further widening social disparities between individuals in different social strata.

Business strategy pathways for short food supply chains: Sharing value between consumers and producers

Short food supply chains play a vital role in connecting local producers with consumers, promoting sustainability, supporting local economies, and providing access to fresh, high-quality products. However, their market is still underdeveloped due to the mismatching between consumer demand and producer supply.The aim of this work is to identify a common vision between producers and consumers in short food supply chains proposing key actions for an effective business strategy to improve alternative food systems at a territorial level. The strategic long-term vision to foster short food supply chains is based on a direct farmer-to-retailer model. Grounded on the case of an ancient grains supply chain located in Emilia-Romagna, Italy, this research relies on a mixed-method approach including quantitative and qualitative methodologies. A household survey conducted with a representative sample of 1122 Italian households allowed to identify four consumer profiles. Then, two focus groups conducted with 10 food supply chain stakeholders led to the identification of six thematic areas of action. By the backcasting methodology, ancient grains supply chain actors proposed a set of business actions to reach consumers' preferences. Finally, a two rounds Delphi conducted with 23 food supply chain experts allowed to validate the results and the 18 actions to be adopted from 2023 to 2030 for the business strategy pathway. The business strategy pathway can increase the local market presence of ancient grain products, helping producers to plan future business activities and disclose changes in consumer preferences or market conditions.

Estimating the Distribution of Household Wealth: Methods for Adjusting Survey Data Estimates Using National Accounts and Rich List Data

Income and wealth surveys are usually affected by unit non‐response and reporting errors, which contribute to a mismatch with macroeconomic figures from national accounts. In this paper, we develop a novel allocation method to address these two issues simultaneously, when only limited external information is available. The proposed approach combines information from a power law (Pareto) model with imputation procedures based on calibration. We apply the proposed simultaneous approach to produce distributional indicators for four Euro‐Area countries that are consistent with their national accounts. In particular, we use data from the 2014 Finnish, French, German, and Italian Household Finance and Consumption Survey and rich list data from Forbes or national press sources, along with household sector aggregates from national accounts, as auxiliary sources of information. A bootstrap procedure is also applied to evaluate the precision of the final estimates.

How to Nowcast Uncertain Income Shocks in Microsimulation Models? Evidence from COVID-19 Effects on Italian Households

How to Nowcast Uncertain Income Shocks in Microsimulation Models? Evidence from COVID-19 Effects on Italian Households

FinTech, Investor Sophistication, and Financial Portfolio Choices

Abstract This paper analyzes the links between advances in financial technology, investors’ sophistication, and the composition and returns of their financial portfolios. We develop a simple portfolio choice model under asymmetric information and derive some theoretical predictions. Using detailed microdata from Banca d’Italia, we test these predictions for Italian households over the period 2004-2020. In general, heterogeneity in portfolio composition and in returns between sophisticated and unsophisticated investors grows with improvements in financial technology. This heterogeneity is reduced only if financial technology is accessible to everyone and if investors have a similar capacity to use it. (JEL: G1, G5, G4, D83, L8, O3) Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Analysis of wastage mechanisms in the supply chain of fish products in a circular economy perspective: Empirical research

The problem of food waste at the post-consumption phase, as well as its rational management, is one of the central matters of the transition process undertaken by the European Union, and it is one of the priorities in the Action Plan for a Circular Economy. In particular, the waste of fish products occurs throughout its supply chain. A wide literature is provided in analyzing waste on the first part of the fishing supply chain while high importance is also given to its consumption phase, especially regarding dynamics, causes and social behaviors. The paper aims at investigating mechanisms and causes of wastage that occurs in the last part of the supply chain, at a local level in Italy, by focusing the analysis at the final stage of fish consumption, produced by Italian households. Among the causes, the change in consumption habits and attitudes is also influenced by the restrictions of the healthy regulations adopted for the pandemic. Specifically, a survey was conducted to investigate what actions, habits and behaviors contribute to producing fish food waste. Causes of waste have been discussed by framing them under two dimensions of final consumption, home consumption and out-of-home consumption. Findings carried out from the research suggest knowledge of channels of distribution and integrative elements to manage the leftover food as well as the intensity of fish consumption are basilar to understand the wastage mechanism in a circular perspective. This study is an assessment of whether factors identified as causes, may increase, or decrease the waste. The importance of realizing explorative studies at the consumption phase under the approach of considering fish waste, not only as a fraction into the food waste but even a distinct part as a whole, is also given by the need to create specific strategies for sustainable production and consumption. A reflection is conducted as to how this study can be the basis for future studies on other food products related to the challenge of the rational management of food waste studies in a circular perspective.

Consumption and income expectations during Covid-19

Using a survey of Italian households administered in November 2021, we study the effect of microeconomic and macroeconomic expectations about the health crisis and income growth on consumption expectations in 2022. The survey elicits individual-level indicators of income and consumption expectations, distinguishing between consumption at home, away from home, online and total. We find that expected household income and expected GDP growth are strongly related to consumption expectations; income risk is positively associated with expected consumption growth for richer households. Finally, our results indicate that health-related variables were not a major drivers of consumption expectations in 2022.