Wealth shocks, unemployment shocks and consumption in the wake of the Great Recession

Dimitris Christelis, Dimitris Georgarakos and Tullio Jappelli ()

Journal of Monetary Economics, 2015, vol. 72, issue C, 21-41

Abstract: Data from the 2009 Internet Survey of the Health and Retirement Study show that many US households experienced large capital losses in housing and financial wealth, and that 5% of respondents lost their job during the Great Recession. For every loss of 10% in housing and financial wealth, the estimated drop in household expenditure was about 0.56% and 0.9%, respectively. Those who became unemployed reduced spending by 10%. In line with predictions of standard inter-temporal choice models, households who perceived the stock market shock to be permanent adjusted spending much more than those who perceived the shock to be temporary.

Keywords: Wealth shocks; Unemployment; Consumption; Great Recession (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (76)

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Related works:
Working Paper: Wealth shocks, unemployment shocks and consumption in the wake of the Great Recession (2015)
Working Paper: Wealth Shocks, Unemployment Shocks and Consumption in the Wake of the Great Recession (2014)
Working Paper: Wealth Shocks, Unemployment Shocks and Consumption in the Wake of the Great Recession (2014)
Working Paper: Wealth shocks, unemployment shocks and consumption in the wake of the Great Recession (2014)
Working Paper: Wealth shocks, unemployment shocks and consumption in the wake of the Great Recession (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:72:y:2015:i:c:p:21-41

DOI: 10.1016/j.jmoneco.2015.01.003

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