Comparing Determinants of Household Wealth in CEE Countries: A Quantile Regression Perspective

This paper examines the factors influencing household wealth and wealth inequality in Central and Eastern European (CEE) countries, with a focus on Slovakia, Poland, Hungary, and neighbouring Austria. Using data from the Household Finance and Consumption Survey (HFCS), the study employs quantile regression to analyse the impact of various determinants on net wealth. The determinants considered include the value of the household's main residence, the value of vehicles, total financial assets, household gross income, mortgage debt, consumer spending, inheritance/gifts, and gender of the reference person. The findings reveal that the value of the household's main residence is the most significant factor affecting wealth across all observed countries and quantiles of the population. Additionally, inheritance and gifts have a notable impact on wealth in all countries except Austria. The value of vehicles, total financial assets, and mortgage debt also play significant roles. By comparing the results not only between countries but also between different determinants, this paper provides insights into the current trends of household wealth in the CEE region.