Micro-Simulating the HFCS

This paper aims to give a more timely picture on the evolution of household finances in the Euro Area by increasing the frequency of the Household Finance and Consumption Survey (HFCS). It extends the work of Ampudia et al. (2016) by including the household consumption-savings decision using a framework similar to Lamarche (2017) who uses information from the Household Budget Survey (HBS) to impute household consumption expenditures.