Using data from the Panel Study of Income Dynamics, this paper considers the mechanism by which changing house values impact U.S. household spending. The results suggest that house values affect consumption by serving as collateral for households to borrow against to smooth their spending. The...

Given that VAT/GST systems are primarily designed for the purchase of goods or services that yield immediate consumption, or consumption over a limited period of time, they do not cope well with goods that are consumed over a long, or indefinite, period. The classic example is a personal...