There is widespread disagreement about the role of housing wealth in explaining consumption. This paper exploits liquid …, to explain fluctuations in the ratios of consumption and household debt to income in South Africa, from 1971 to 2005. The … variable with key interactions with drivers of consumption and debt. Credit conditions are proxied by a spline function …

effects of monetary policy shocks on house prices and consumption in a sample of OECD countries. With frictionless credit …) at the business cycle frequency, the correlation between consumption and house prices increases with the degree of … flexibility/development of mortgage markets; (3) the transmission of monetary policy shocks on consumption and house prices is …

Consumption Expenditure Survey (CEX) to estimate individual-level impulse responses as well as multipliers for government spending … tend to decrease consumption inequality, whereas tax policy shocks most negatively affect the lives of the poor, more so … than the rich, thus increasing consumption inequality. …

policy shocks on aggregate consumption and for the impact on inflation that other models have hard a time explaining. In …

The consumption Euler equation is a building block of modern macro theory. Yet, the existing evidence on aggregate data … state of the economy. The nonlinear method reveals that during periods in which consumption is above its conditional average … value) than the estimates associated with periods of below-average consumption. Our evidence is consistent with models of …