![]() This paper builds on this literature using a panel of Spanish households for the period 2002–2011 to estimate the MPC out of wealth and explore the potential channels at play. While the former group focuses on the decreasing MPC pattern across the wealth distribution, the latter tries to disentangle the different mechanisms behind the housing wealth effect. Recent studies shed more light on the wealth-consumption relationship by studying heterogeneities across the distribution of wealth (Arrondel et al., 2019 Garbinti et al., 2020) and the presence of asymmetric responses depending on the type of shock (Andersen & Leth-Petersen, 2019 Christelis, et al., 2020 Guren et al., 2020, de Roiste et al., 2021). ![]() financial) differs by country and period. The MPC out of wealth is usually estimated between 1 and 10 cents, but the relevance of different assets (e.g., housing vs. Footnote 1 Results vary depending on the sample and the type of asset under analysis. ![]() This question has recently regained attention due to the large changes in asset prices during the last business cycle and the use of unconventional monetary policies from Central Banks targeting specific assets.Ī growing body of literature (Bover, 2005 Dynan & Maki, 2001, Disney et al., 2010 Paiella, 2007 Paiella & Pistaferri, 2017) estimates the wealth effect out of different assets using household-level data. The way changes in wealth affect households’ consumption is a relevant topic to understand the transmission of fiscal and monetary policies to consumer behavior.
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