-gap. Moreover, the consumption decline appears to be concentrated in households in the lower part of the wealth distribution …. Nonetheless, households in the lowest wealth quintile, do not show a significant consumption decline. The data suggests that this … composed of essential expenditures. …

) houses when their wealth-to-housing ratios reach an optimal lower (upper) boundary. However, in our model, these boundaries … a more expensive house in periods of high expected growth in house prices have significantly lower ex-ante wealth …-to-housing ratios than those moving in periods of low expected growth. We also find that the share of wealth invested in risky assets is …

durable from nondurable expenditures. We adopt a theoretical partial equilibrium framework to justify the identification …

durable from nondurable expenditures. We adopt a theoretical partial equilibrium framework to justify the identification …

equity and labour markets. Equity positively affects money demand through wealth effects, as equities are a significant store … of household wealth and thus part of a financial transaction motive. Negative substitution effects through the expected … money. All three new elements, in particular housing and financial wealth, have been found statistically and economically …

In this paper we present an empirically stable money demand model for Euro area M3. We show that housing wealth is an …

is affected by the gap between `target' and actual wealth, with the target wealth determined by credit conditions and … saving rate's long-term decline, while fluctuations in net wealth and uncertainty capture the bulk of the business …