Housing wealth is about one half of household net worth, and consumption is a considerable fraction (about two thirds …) of Gross Domestic Product in the United States. Empirically, movements in housing wealth are associated with movements in … wealth and consumption are linked together. A sizable portion of the comovement between housing wealth and consumption …

This paper provides new evidence on the effect of housing wealth on consumption by focusing on the impact of home …-equity extraction. We develop a household consumption decision model to illustrate the differential effect of home-equity extraction …, relative to net home equity, on consumption. The home-equity extraction channel is also shown to vary with household …

The study quantifies stock market and housing market wealth effects on households' non-durable consumption using … Italian household panel data (SHIW) of 1989-2002. We found all households react similarly to aggregate housing and stock … market gains. We also found statistically and economically significant housing wealth effects with a marginal propensity to …

wealth are closely linked to household characteristics, including income and demographic factors. Finally, underlying … structural changes in household characteristics point to potentially lower aggregate MPCs from wealth going forward …This paper analyzes the existence of 'wealth effects' derived from net equity (in the form of housing, financial assets …