Much of the literature on the effect of housing wealth on consumption has been embedded in a simple life-cycle model in … which housing price changes work as a "wealth effect". In such models, windfall gains in housing always lead to positive … changes in consumption. However, this might be a fallacy of composition. Such models ignore that changes in housing wealth …

enables the calculation of other popular indicators concerning households, such as housing equity and household total net …Housing is the greatest asset held by most households, and it is an important determinant of their financing and … consumption decisions. Despite the fact that measuring housing wealth is crucial for understanding households' economic behavior …