Housing Wealth Effects: Evidence from New Vehicle Registrations

Christian Gillitzer and Jin Cong Wang
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Christian Gillitzer: Reserve Bank of Australia
Jin Cong Wang: Reserve Bank of Australia

RBA Bulletin (Print copy discontinued), 2015, 13-20

Abstract: This article investigates the relationship between housing wealth and consumption using postcode-level variation in housing prices and new passenger vehicle registrations as a proxy for consumption at a postcode level. It is estimated that a one per cent increase in housing wealth is associated with about half a per cent increase in new passenger vehicle registrations – the consumption indicator. But because new vehicle consumption is likely to be particularly sensitive to changes in housing wealth, the results suggest a relatively modest relationship between housing wealth and total consumption.

Keywords: Households; consumption; house prices; wealth effects (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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