Is discrepancy between confidence and spending driven by pessimism or by high aspriations? — Review of the discrepancy between the admitted financial situation and actual spending in Hungary

Csongor Hajdu

doi:10.1556/204.2017.39.2.4

Society and Economy

Volume/Issue:: Volume 39: Issue 2

Is discrepancy between confidence and spending driven by pessimism or by high aspriations? — Review of the discrepancy between the admitted financial situation and actual spending in Hungary

Author:

Csongor Hajdu

Csongor Hajdu Faculty of Social Sciences

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csongor.hajdu@yahoo.com

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Pages:: 233–250

Online Publication Date:: Jun 2017

Publication Date:: 01 Jun 2017

Article Category:: Research Article

DOI:: https://doi.org/10.1556/204.2017.39.2.4

Keywords:: income; spending; savings; confidence; benchmarks; D12; E21; H30

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The opinions of people are expected to forecast their actions, and even major economic institutions rely on this correlation. This research paper examines a case when the opinion of people about their financial situation contradicts their financial-related actions. In 2012 in Hungary the general opinion of people about their financial situation was showing the lowest confidence in the world, with a significant declining trend, reaching an extremely low level. Although the general expectation would be that this pessimism triggers a set-back in consumer spending, figures show that Hungarians were on the other end of the scale regarding their expenditures and were greatly increasing their spending. This raises the question: why do people say they are in such a tough financial situation yet instead of saving they increase their spending? This paper presents a cross-country analysis that reviews the severity of this discrepancy, as well as proves the validity of the question by excluding several alternative explanations, followed by a recommendation and hypotheses for a detailed research to explain the phenomenon.

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Society and Economy

Print ISSN:: 1588-9726

Online ISSN:: 1588-970X

Editor-in-chief: Balázs SZENT-IVÁNYI

Co-Editors:

Péter MARTON (Corvinus University, Budapest)
István KÓNYA (Corvinus University, Budapest)
László SAJTOS (The University of Auckland)
Gábor VIRÁG (University of Toronto)

Associate Editors:

Tamás BOKOR (Corvinus University, Budapest)
Sándor BOZÓKI (Corvinus University Budapest)
Bronwyn HOWELL (Victoria University of Wellington)
Hintea CALIN (Babeş-Bolyai University)
Christian EWERHART (University of Zürich)
Clemens PUPPE (Karlsruhe Institute of Technology)
Zsolt DARVAS (Bruegel)
Szabina FODOR (Corvinus University Budapest)
Sándor GALLAI (Corvinus University Budapest)
László GULÁCSI (Óbuda University)
Dóra GYŐRFFY (Corvinus University Budapest)
György HAJNAL (Corvinus University Budapest)
Krisztina KOLOS (Corvinus University Budapest)
Alexandra KÖVES (Corvinus University Budapest)
Lacina LUBOR (Mendel University in Brno)
Péter MEDVEGYEV (Corvinus University Budapest)
Miroslava RAJČÁNIOVÁ (Slovak University of Agriculture)
Ariel MITEV (Corvinus University Budapest)
Éva PERPÉK (Corvinus University Budapest)
Petrus H. POTGIETER (University of South Africa)
Sergei IZMALKOV (MIT Economics)
Anita SZŰCS (Corvinus University Budapest)
László TRAUTMANN (Corvinus University Budapest)
Trenton G. SMITH (University of Otago)
György WALTER (Corvinus University Budapest)
Zoltán CSEDŐ (Corvinus University Budapest)
Zoltán LŐRINCZI (Ministry of Human Capacities)

Society and Economy
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2023
Scopus
CiteScore	1.5
CiteScore rank	Q2 (Sociology and Political Science)
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Society and Economy
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Society and Economy
Language	English
Size	B5
Year of Foundation	1972
Volumes per Year	1
Issues per Year	4
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ISSN	1588-9726 (Print)
ISSN	1588-970X (Online)