Housing Wealth And Consumption Growth
DOWNLOAD
Download Housing Wealth And Consumption Growth PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get Housing Wealth And Consumption Growth book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
Housing Wealth And Consumption Growth
DOWNLOAD
Author : Jie Gan
language : en
Publisher:
Release Date : 2007
Housing Wealth And Consumption Growth written by Jie Gan and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2007 with categories.
This paper uses a large panel dataset that tracks the housing wealth and spending behavior of 12,793 individuals in Hong Kong to study how housing wealth affects household consumption. Housing wealth is measured based on the repeated-sales price indices of nine districts in Hong Kong, which are estimated using government registry of all the 900,000 repeated housing transactions. Consumption is measured by credit card charges provided by the five largest credit card issuers in Hong Kong. These detailed data make it possible to identify consumption responses to housing wealth based on time-series variation within individual households (through household fixed effects). Further, rich variations across households help pin down the mechanism of the observed consumption sensitivity.I find a significant effect of housing wealth on consumption. Such an effect seems to be on account of a reduction in precautionary saving, as opposed to relaxation of borrowing constraints. In particular, consumption sensitivity exists even in the absence of refinancing and occurs only among less leveraged households and younger households who behave like quot;buffer stockquot; consumers (Gourinchas and Parker, 2002). Finally, consumption does not respond to predictable changes in housing wealth, which is inconsistent with liquidity constraints. The results highlight the importance of housing wealth in influencing consumption even in the absence of refinancing and relaxation of credit constraints.
Analyzing The Effects Of Financial And Housing Wealth On Consumption Using Micro Data
DOWNLOAD
Author : Carlos Caceres
language : en
Publisher: International Monetary Fund
Release Date : 2019-05-24
Analyzing The Effects Of Financial And Housing Wealth On Consumption Using Micro Data written by Carlos Caceres and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019-05-24 with Business & Economics categories.
This paper analyzes the existence of “wealth effects” derived from net equity (in the form of housing, financial assets, and total net worth) on consumption. The study uses longitudinal household-level data?from the Panel Study of Income Dynamics (PSID) ?covering about 7,000-9,000 households in the U.S., with the estimations carried over the period 1999-2017. Overall, wealth effects are found to be relatively large and significant for housing wealth, but less so for other types of wealth, including stocks. Furthermore, the analysis shows how these estimated marginal propensities to consume (MPC) from wealth are closely linked to household characteristics, including income and demographic factors. Finally, underlying structural changes in household characteristics point to potentially lower aggregate MPCs from wealth going forward.
How Large Is The Housing Wealth Effect
DOWNLOAD
Author : Chris Carroll
language : en
Publisher:
Release Date : 2006
How Large Is The Housing Wealth Effect written by Chris Carroll and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006 with Consumption (Economics) categories.
This paper presents a simple new method for estimating the size of 'wealth effects' on aggregate consumption. The method exploits the well-documented sluggishness of consumption growth (often interpreted as 'habits' in the asset pricing literature) to distinguish between short-run and long-run wealth effects. In U.S. data, we estimate that the immediate (next-quarter) marginal propensity to consume from a $1 change in housing wealth is about 2 cents, with a final long-run effect around 9 cents. Consistent with several recent studies, we find a housing wealth effect that is substantially larger than the stock wealth effect. We believe that our approach is preferable to the currently popular cointegration- based estimation methods, because neither theory nor evidence justifies faith in the existence of a stable cointegrating vector.
Feeling Rich Feeling Poor Housing Wealth Effects And Consumption In Europe
DOWNLOAD
Author : Mr. Serhan Cevik
language : en
Publisher: International Monetary Fund
Release Date : 2023-12-08
Feeling Rich Feeling Poor Housing Wealth Effects And Consumption In Europe written by Mr. Serhan Cevik and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2023-12-08 with Business & Economics categories.
Households across Europe are struggling with a double crisis—the worst inflation shock since the World War II and a sudden correction in house prices. There is a rich literature on how housing price cycles affect consumer spending, finding mixed results with a wide range of consumption responses to changes in housing wealth. In this paper, using quarterly data on 20 countries in Europe over the period 1980–2023, we analyze the dynamic relationship between inflation-adjusted housing wealth and consumer spending and obtain statistically significant and economically intuitive results. Household consumption responds positively and swiftly to changes in real house prices and gross disposable income as expected. Using the estimated coefficients, we can deduce that the average quarter-on-quarter decline of -1.96 percent in real house prices in the first quarter of 2023 in Europe could dampen consumer spending by about -0.51 percentage points in real terms on a cumulative basis over a horizon of eight quarters.
Wealth Effects On Household Final Consumption
DOWNLOAD
Author : Yener Coskun
language : en
Publisher:
Release Date : 2018
Wealth Effects On Household Final Consumption written by Yener Coskun and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2018 with categories.
The study primarily explores the linkage between wealth effects, arising from stock and housing market channels, and household final consumption for 11 advanced countries over the period from 1970 Q1 to 2015 Q4. As a modelling strategy, we employ regression analysis through the common correlated effects mean group (CCEMG) estimator, as well as Durbin-Hausman cointegration and Dumitrescu and Hurlin (2012) causality tests. The study provides various pieces of evidence through whole-panel and country-level analyses. In this respect, we find that consumption is mostly explained by income and housing wealth is positively and significantly correlated with consumption. As counter-intuitive evidence, we detect a negative linkage between consumption and stock wealth. The evidence also suggests a long-run cointegration relationship among consumption, income, interest rates, housing wealth, and stock wealth. Moreover, we find bidirectional causality between consumption and income, stock wealth, housing wealth, and interest rates. Overall, the evidence implies that housing wealth, rather than stock wealth, is the primary source of consumption growth in advanced countries.
Housing Consumption And Credit Constraints
DOWNLOAD
Author : Andreas Lehnert
language : en
Publisher:
Release Date : 2004
Housing Consumption And Credit Constraints written by Andreas Lehnert and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2004 with Consumption (Economics) categories.
"I test the credit-market effects of housing wealth shocks by estimating the consumption elasticity of house price shocks among households in different age quintiles. Younger households face faster expected income growth and hence would like to borrow more than older households. I estimate consumption elasticities from housing wealth by age quintile to be (4; 0; 3; 8; 3) percent. As predicted by theory, the youngest group has a higher elasticity of consumption than the next two age quintiles. That the consumption of the age quintile on the verge of retirement is responsive to housing wealth is also not surprising: I show that these households are likeliest to "downsize" their house and thus realize any capital gains"--Abstract.
The Blackwell Companion To The Economics Of Housing
DOWNLOAD
Author : Susan J. Smith
language : en
Publisher: John Wiley & Sons
Release Date : 2010-01-22
The Blackwell Companion To The Economics Of Housing written by Susan J. Smith and has been published by John Wiley & Sons this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010-01-22 with Business & Economics categories.
The Blackwell Companion to the Economics of Housing willhelp students and professionals alike to explore key elements ofthe housing economy: home prices, housing wealth, mortgage debt,and financial risk. Features 24 original essays, including an editorialintroduction and three section overviews Includes 39 world-class authors from a mix of educational andfinancial organizations in the UK, Europe, Australia, and NorthAmerica Broadly-based, scholarly, and accessible, serving students andprofessionals who wish to understand how today’s housingeconomy works Profiles the role and relevance of housing wealth; themismanagement of mortgage debt; and the pitfalls and potential ofhedging housing risk Key topics include: the housing price bubble and crash; thesubprime mortgage crisis in the US and its aftermath; the linksbetween housing wealth, the macroeconomy, and the welfare ofhome-occupiers; the mitigation of credit and housing investmentrisks Specific case studies help to illustrate concepts, along withnew data sets and analyses to illustrate empirical points
Empirical Evidence Of The Housing Wealth Effect
DOWNLOAD
Author : Sabine Winkler
language : en
Publisher:
Release Date : 2016
Empirical Evidence Of The Housing Wealth Effect written by Sabine Winkler and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with categories.
Understanding the housing wealth effect is important for macroeconomic forecasting and policy setting. The paper uses cointegration theory to study the interplay between consumption, income and housing wealth in 14 countries observed quarterly from 1995 to 2013. Cointegration is found to be present in Canadian, Danish, German, Italian, Japanese and United States data, implying that the consistently estimable propensity to consume out of housing wealth is in the range of two cents per US dollar in Italy and nine cents per US dollar in Denmark. The housing wealth effect tends to be lower in countries where the income elasticity of consumption, wealth volatility and income inequality are higher. The effect tends to be larger in countries where business conditions are superior and access to credit is easier. Examining the short-run relationship between consumption, income and housing wealth highlights that transitory income moves do not Granger-cause consumption growth, and transitory housing wealth changes tend to contain information useful for predicting consumption growth in each sample country. A correlation analysis shows points of policy action aimed at influencing the housing wealth effect, and thus aggregate consumption and the economy.
Housing Wealth Effects
DOWNLOAD
Author : Eric S. Belsky
language : en
Publisher:
Release Date : 2004
Housing Wealth Effects written by Eric S. Belsky and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2004 with Consumer behavior categories.
Housing Wealth And Aggregate Saving
DOWNLOAD
Author : Jonathan Skinner
language : en
Publisher:
Release Date : 1989
Housing Wealth And Aggregate Saving written by Jonathan Skinner and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1989 with Consumption (Economics) categories.
The recent appreciation in housing value can have large effects on aggregate saving. This paper uses a simulation model to show that aggregate saving will decline substantially if life cycle homeowners spend down their housing windfalls. Homeowners with a bequest motive, however, may save more to assist their children in buying the now more expensive housing. To test whether families spend their housing capital gains, I use housing, income, and consumption data from the Panel Study of Income Dynamics. While a cross-section time-series regression implies that housing wealth does affect saving, a fixed-effects model finds no effect.