Showing 1 - 10 of 467
Using a novel dataset for the US states, this paper examines whether household debt and the protracted debt deleveraging help explain the dismal performance of US consumption since 2007 in the aftermath of the housing bubble. By separating the concepts of deleveraging and debt overhang -- a flow...
Persistent link: https://www.econbiz.de/10013016939
This paper estimates the wealth effects on consumption in the euro area as a whole. I show that: (i) financial wealth effects are relatively large and statistically significant; (ii) housing wealth effects are virtually nil and not significant; (iii) consumption growth exhibits strong...
Persistent link: https://www.econbiz.de/10013160476
This paper studies the heterogeneity of the marginal propensity to consume out of wealth (MPC) both across and within countries. We estimate the MPC based on a cross-country harmonized household level dataset which combines surveys on wealth, income and consumption. We use panel regressions and...
Persistent link: https://www.econbiz.de/10012844559
In this paper we examine the link between wage inequality and consumption inequality using a life cycle model that incorporates household consumption and family labor supply decisions. We derive analytical expressions based on approximations for the dynamics of consumption, hours, and earnings...
Persistent link: https://www.econbiz.de/10013057673
For most academics and policy makers, the depth of the 2007-09 financial crisis, its longevity and its impacts on the real economy resulted from an erosion of confidence. This paper proposes to assess empirically the link between consumer sentiment and consumption expenditures for the United...
Persistent link: https://www.econbiz.de/10013124648
How do households adjust to a large debt shock? This paper studies household responses to a revaluation of foreign currency household debt during a large depreciation in Hungary. Relative to similar local currency debtors, foreign currency debtors reduce consumption expenditures approximately...
Persistent link: https://www.econbiz.de/10014239455
We estimate the degree of 'stickiness' in aggregate consumption growth (sometimes interpreted as reflecting consumption habits) for thirteen advanced economies. We find that, after controlling for measurement error, consumption growth has a high degree of autocorrelation, with a stickiness...
Persistent link: https://www.econbiz.de/10013316561
This paper assesses the effectiveness of risk sharing mechanisms in Europe by breaking down the factor income … diversification boosts or dampens risk sharing. Using a panel of European countries, we compare the years before and after the 2008 … risk sharing in recent years and that a higher integration in the bond and equity markets significantly improves risk …
Persistent link: https://www.econbiz.de/10012823388
Standard transaction cost arguments can only partially explain why the share of cash transactions is still high in many countries. This paper shows that consumers' desire to monitor liquidity is one of the reasons. Consumers make use of a distinctive feature of cash – a glance into one's...
Persistent link: https://www.econbiz.de/10013120188
Probabilistic job loss expectations elicited in the Consumer Expectations Survey have predictive power for future job loss. We find that an unexpected job loss leads to a negative consumption response, while this e˙ect is muted for workers with ex-ante job loss expectations - consistent with...
Persistent link: https://www.econbiz.de/10014348864