How sizable is the wealth effect on consumption in euro area countries? To address this question, we use newly … available harmonized euro area wealth data and the methodology in Carroll et al. (2011b). We find that the marginal propensity … to consume out of total wealth averaged across the largest euro area economies is around 3 cents per euro, with a …

fluctuations in household wealth have driven major swings in economic activity. This paper considers so-called wealth effects - the … impact of changes in wealth on household consumption and the overall macroeconomy. There is an extensive existing literature …The effect of wealth on consumption is an issue of longstanding interest to economists. Analysts believe that …

Exploring dynamics of household final consumption is an important concern for policy-makers. Turkey had witnessed … and therefore, other macroeconomic variables. In this paper, we examine the linkage between household final consumption … and wealth in Turkey, arising from equity and housing market channels over the period from 1998 Q1 to 2016 Q2. We employ …

The study primarily explores the linkage between wealth effects, arising from stock and housing market channels, and … household final consumption for 11 advanced countries over the period from 1970 Q1 to 2015 Q4. As a modelling strategy, we …-panel and country-level analyses. In this respect, we find that consumption is mostly explained by income and housing wealth is …

. Finally, substantial crosscountry heterogeneity in marginal propensities to consume out of income and wealth components calls …

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 …

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 … wealth have distributional consequences between those planning to sell their house and those planning to buy a house. Further …

This paper studies the heterogeneity of the marginal propensity to consume out of wealth using French household surveys …. We find decreasing marginal propensity to consume out of wealth across the wealth distribution for all net wealth … assets, except in the top of the wealth distribution. Consumption is less sensitive to the value of the main residence than …

This paper studies the heterogeneity of the marginal propensity to consume out of wealth using French household surveys …. We find decreasing marginal propensity to consume out of wealth across the wealth distribution for all net wealth … assets, excepted in the top of the wealth distribution. Consumption is less sensitive to the value of the main residence than …

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 …