Wealth and Consumption: An Assessment of the International Evidence

Labhard, Vincent; Sterne, Gabriel; Young, Chris

doi:10.2139/ssrn.872685

Cited by 17 publications

(22 citation statements)

References 26 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The cointegration result has been confirmed in recent studies, like Davis and Palumbo (2001), Palumbo, Rudd and Whelan (2002), Bertaut (2003), Fernandez-Curegedo, Price and Blake (2003), Tan and Voss (2003) and Labhard, Sterne and Young (2005). In addition, wealth effects in the US and the UK exceed those in continental Europe.…”

Section: Introductionsupporting

confidence: 58%

“…However, if house prices are considered, the cointegration vector is in line with the life cycle permanent income hypothesis, more or less. For example, if both wealth measures enter the analysis and the long run is estimated by the simple two step method (Brüggemann and Lütkepohl, 2005), the elastic- countries or those of Labhard, Sterne and Young (2005). This is due to the fact that the results are restricted to the common components.…”

Section: About Here-mentioning

confidence: 99%

See 1 more Smart Citation

The long run relationship between private consumption and wealth: common and idiosyncratic effects

Dreger

Reimers

2011

Port Econ J

View full text Add to dashboard Cite

Section: Introductionsupporting

confidence: 58%

Section: About Here-mentioning

confidence: 99%

The long run relationship between private consumption and wealth: common and idiosyncratic effects

Dreger

Reimers

2011

Port Econ J

View full text Add to dashboard Cite

“…Cross-country comparative work includes Bertaut (2002), Ludwig and Sløk (2004), Catte et al (2004), Case et al (2005) and Labhard et al (2005). The implications of these papers are constrained by data limitations, which I try to alleviate.…”

Section: Ecb Working Paper Series No 1117mentioning

confidence: 99%

“…The implications of these papers are constrained by data limitations, which I try to alleviate. In particular, the above papers do not investigate housing wealth effect (Bertaut, 2002 andLabhard et al, 2005), use annual data (Case et al, 2005 andin part Catte et al, 2004), relatively few countries (Bertaut, 2002;Catte et al, 2004 andCardarelli et al, 2008) or proxy wealth variables with stock and real estate prices (Ludwig andSløk, 2004 andCardarelli et al, 2008).…”

Section: Ecb Working Paper Series No 1117mentioning

confidence: 99%

“…This is not surprising. Labhard et al (2005) and others also find substantial uncertainty about the wealth effects in individual countries. Fortunately, I can take advantage of the cross-section dimension of my dataset and address the issue by imposing homogeneity restrictions on groups of similar countries.…”

Section: Wealth Effects For Groups Of Countries and Over Timementioning

confidence: 99%

See 1 more Smart Citation

What Drives Personal Consumption? The Role of Housing and Financial Wealth

Slacalek¹

2009

The B.E. Journal of Macroeconomics

133

134

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract 4 Non-technical summary 5 Terms of use: Documents in

show abstract

Threshold effects of housing affordability and financial development on the house price‐consumption nexus

2020

View full text Add to dashboard Cite

The study explores the asymmetric effect of housing and financial wealth on household consumption behaviour using panel data from 24 OECD countries, spanning the period 2000-2016 by employing a financial development (FD) index (proxy for financial deepening) and the house price-to-income (HPI) ratio (proxy for housing affordability) through a threshold empirical framework. The analysis tests certain hypotheses, such as: (i) the housing wealth effect on consumption is stronger than its financial counterpart, (ii) overall wealth effects increase (decrease) during bubble (post bubble) periods, (iii) the higher level of financial development and the lower level of housing affordability ratio both result in stronger wealth effects, (iv) increasing wealth effects show a bubble formation. The results suggest that housing wealth has generally a greater positive effect on consumption. The effect of housing and financial wealth on consumption increases, depending on higher financial development and declining housing affordability. The evidence also suggests that the impact of housing and stock market wealth has increased during the dot.com and housing bubble periods.

show abstract

Wealth and Consumption: An Assessment of the International Evidence

Cited by 17 publications

References 26 publications

The long run relationship between private consumption and wealth: common and idiosyncratic effects

The long run relationship between private consumption and wealth: common and idiosyncratic effects

What Drives Personal Consumption? The Role of Housing and Financial Wealth

Threshold effects of housing affordability and financial development on the house price‐consumption nexus

Contact Info

Product

Resources

About