Housing and equity wealth effects of Italian households

Tuomas Peltonen () and Charles Grant

No 857, Working Paper Series from European Central Bank

Abstract: The study quantifies stock market and housing market wealth effects on households' non-durable consumption using Italian household panel data (SHIW) of 1989-2002. We found all households react similarly to aggregate housing and stock market gains. We also found statistically and economically significant housing wealth effects with a marginal propensity to consume out of idiosyncratic housing wealth gains to be over 8 percent. The results from idiosyncratic equity wealth e¤ects were lower, at around 0.4 percent. We also found that older households react more to changes in housing wealth. JEL Classification: D12, E21

Keywords: Equities; housing; marginal propensity to consume (search for similar items in EconPapers)
Date: 2008-01
Note: 355041
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Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2008857

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