wealth effects

The role of asset markets for private consumption. Evidence from paneleconometric models

JEL codes: 
E20
Version Date: 
Feb 2009
Author/s: 
Abstract: 

We explore the long and short run relationship between private consumption, disposable income and housing and financial wealth approximated by price indices for a panel of industrialized countries. Consumption, income and wealth are cointegrated in their common, but not in their idiosyncratic components.

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