##za, m. and slacalek, j. ( 2018 ), “ how does monetary policy affect income and wealth inequality? evidence from quantitative easing in the euro area ”, working paper series, no 2190, ecb. [ 13 ] quantitatively, these results may differ across countries, depending on, for example, the reaction of employment and house prices to monetary policy. at the same time, qualitatively these results also hold across large euro area countries, see lenza and slacalek op. cit. for details. [ 14 ] see the reviews of the empirical literature by jappelli, t. and pistaferri, l. ( 2010 ), “ the consumption response to income changes, ” annual review of economics, vol. 2 ( 1 ), pp. 479 – 506 ; carroll, c. d., slacalek, j., tokuoka, k. and white, m. n. ( 2017 ), “ the distribution of wealth and the marginal propensity to consume, ” quantitative economics, vol. 8, pp. 977 – 1020, table 1 ; and crawley, e. s., and kuchler a. ( 2018 ), “ consumption heterogeneity : micro drivers and macro implications, ” working paper, no 129, danmarks nationalbank, table 1. a related paper builds on heterogeneity in marginal propensities across savers and borrowers see mian, a., straub, l. and sufi, a. ( 2019 ), “ indebted demand, ” harvard university, mimeo. [ 15 ] see fagereng, a., holm, m. b. and natvik g. j. ( 2017 ) : “ mpc heterogeneity and household balance sheets, ” discussion paper, statistics norway ; and crawley, e. s., and kuchler, a., op. cit. [ 16 ] see kaplan, g., moll, b. and violante, g. l. ( 2018 ) “ monetary policy according to hank ”, american economic review, vol. 108 ( 3 ), pp. 697 - 743. of course, in addition to the new keynesian framework, there is also a wider literature studying the implications of household heterogeneity for macroeconomic dynamics through a variety of mechanisms. see,

, wave 2. notes : the chart, taken from lenza, m. and slacalek, j. ( 2018 ) op. cit, shows the percentage change in mean income across income quintiles in the euro area four quarters after the impact of a quantitative easing shock, which is assumed to correspond to a 30 basis point drop in the spread between a 10 - year sovereign bond and the policy rate. it also shows the decomposition of the change into the extensive margin ( transition from unemployment to employment ) and the intensive margin ( increase in wages ). the numbers in brackets show the initial levels of mean gross household income in each quintile. the statistics cover the euro area, which is modelled here as an aggregate of france, germany, italy, and spain. second, households differ substantially in the size and composition of the assets they own and in their indebtedness ( chart 5 ). based on the second wave of the hfcs almost 60 percent of euro area households are homeowners, of which about a third have a mortgage. almost all households own financial assets, even if their value is typically only a small fraction of the value of their real estate holdings. these dimensions of household heterogeneity clearly matter for the exposure of individual households to monetary policy decisions. chart 5 household assets and debt by income quintile ( x - axis : quintiles and deciles ; y - axis : eur thousands ) sources : de bond, g. et al. ( op. cit ), and household finance and consumption survey, results from the second wave. notes : the chart shows the average value of assets and debt per household across five income quintiles for the euro area. the top quintile is further broken down into two deciles. housing wealth is composed of the households ’ main residence and other real estate. other assets include the value of households ’ vehicles, voluntary pension / life insurance, shares, valuables, bonds, managed accounts and money owed to households. for instance, ecb simulations suggest that unexpectedly - low inflation tends to harm young and middleaged households, and more so for young income - rich households that disproportionately have nominal debt liabilities. by contrast, older households tend to gain from unexpectedly - low inflation, especially if they are incomerich, since this group tends to hold nominal assets. to the extent that their financial assets have short maturities and their mortgages have