The wealth effect of housing on aggregate consumption
This study measures the effect of changes in net housing and financial wealth on household consumption using Australian data over the period Q2:1988-Q1:2003. It is found a permanent one dollar rise in housing wealth leads to a six cent increase in consumption, three times the effect of financial wealth. The result speaks strongly against the notion of assets fungibility, and suggests that a sharp movement in house prices is potentially more disruptive than a corresponding movement in financial asset prices.
Year of publication: |
2006
|
---|---|
Authors: | Tang, Kam-Ki |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 13.2006, 3, p. 189-193
|
Publisher: |
Taylor & Francis Journals |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Beard, Rodney, (2002)
-
The global economic impacts of trade and financial reform in China
McKibbin, Warwick J, (1998)
-
The hierarchical structure of the firm : a geometric perspective
Tang, Kam Ki, (2008)
- More ...