Bottazzi, Renata; Trucchi, Serena; Wakefield, Matthew - 2017 - This version: August 2015
We estimate marginal propensities to consume from wealth shocks for Italian households in the early part of the Great Recession. Large asset price shocks in 2008 underpin an IV estimator. A euro fall in risky financial wealth resulted in cuts in annual total (non -durable) consumption of 8.5 ] 9...