Chadha, Jagjit; Corrado, Germana; Corrado, Luisa - 2013
We decompose aggregate consumption by modelling both savers and their links to collateral constrained borrowers through … proportion to the riskiness of assets, the demand for loans, the asset price and the quantity of housing collateral. We show that … even though house price do not represent wealth, aggregate consumption is not independent of movements in house prices. We …