It is widely claimed that housing wealth, as well as stock prices, have an impact on consumption and hence on aggregate … recent research in behavioral economics. Particular attention is paid to a model of the response of consumption to wealth …

, and measures of aggregate consumption for each of the geographic units over time. We estimate regressions relating … consumption to income and wealth measures, finding a statistically significant and rather large effect of housing wealth upon … household consumption. …

financial assets, and measures of aggregate consumption for each of the geographic units over time. We estimate regression … models in levels, first differences and in error-correction form, relating per capita consumption to per capita income and … wealth. We find a statistically significant and rather large effect of housing wealth upon household consumption. This effect …