We study the cyclical dynamics of consumption in the euro area (EA) and the large EA countries by distinguishing … cross-country heterogeneity in how different factors (including durable-specific ones) explain consumption; (iii) the … strength of spillovers from durable to nondurable consumption, as predicted by theory, is empirically correlated with how much …

. Fifth, we find evidences that housing prices shock decreases consumption inequality while financial wealth shocks have a …, income and consumption. We use panel regressions and an instrumental variable approach. First, our panel-based MPC estimates … the reaction to losses versus gains. Fourth, higher MPC is obtained for the two main consumption expenditure categories …

loss. We find that an unexpected job loss leads to a negative consumption response, while this effect is muted for workers … with ex-ante job loss expectations - consistent with the Permanent Income Hypothesis. The negative consumption response to … lower levels of liquid wealth. This supports the notion that the persistence of the unemployment shock is an important …