This Master Thesis in General Management aims on defining the relationship between a country's degree of development and household asset management in the European Union. Both of the variables are defined by relevant sub-variables where the relationships are being observed. There were used datasets gathered by respected European Statistical Agency Eurostat for 2019. Master Thesis focuses on the European Union area and it aims at defining the crucial relationships between the variables in order to draw the conclusions that would help in pursuing the degree of development in different countries. In the Master Thesis, we were using quantitative research reflecting on the statistically expressed relationships using the correlation pattern. There were used 29 numbers for each of the variables representing the total number of European Union members in 2019 (28) plus the European Union average. There were found statistically significant relationships based on which we were able to define a proper generalization together with the causation pattern for the European Union countries and households.

This study examines whether macroeconomic variables, such as household disposableincome, financial assets and total debt affect household consumption by applying Panel dataon The fixed effects model. The data included 13 European OECD countries that are membersof EMU between the years 2009-2019. The test showed that disposable income is the onlyvariable with statistically significant effect on household consumption. The life cyclehypothesis as well as The permanent income hypothesis, states that individuals strive forsmooth consumption by distributing their resources relatively evenly. That way they are ableto maintain a certain standard of living. According to The Ricardian equivalence theorem,neither changes in saving nor indebtedness increase private consumption, if the initial wealthremains unchanged. These theories are included in the theoretical reference which, togetherwith previous studies, constitutes the starting point for this paper.