The effect of wealth on consumption is an issue of longstanding interest to economists. Analysts believe that … impact of changes in wealth on household consumption and the overall macroeconomy. There is an extensive existing literature …

This paper studies the direct impact of households' debt on consumption over the business cycle. We use household … leverage, consumption, and asset prices. We find that debt levels exert a negative impact on consumption, which is particularly …' debt in past periods are not relevant in determining consumption; (ii) households adjust faster their consumption to debt …

sample for investigating the relevance of the housing net worth channel to consumption developments. The evidence presented … consumption. It does not have an impact outside that downturn. Consequently, the results add to the international evidence of how … an accumulation of household debt and a downturn in house prices has a substantial adverse impact on consumption. …