Multi-Horizon Financial and Housing Wealth Effects across the U.S. States

Yener Coskun (), Christos Bouras, Rangan Gupta and Mark Wohar ()
Additional contact information
Christos Bouras: Department of Banking and Financial Management, University of Piraeus, 18534 Piraeus, Greece

Sustainability, 2021, vol. 13, issue 3, 1-20

Abstract: We investigate for the presence of multi-horizon wealth effects across U.S. states over the period of 1975:Q2 to 2012:Q2 by utilizing multi-horizon non-causality testing and multi-horizon causality measurement. At the state/aggregate level, we document that housing wealth has more statistically significant and persistent impact on private consumption than financial wealth. We also find that state-level housing/financial wealth effects are present at long time horizons and exhibit heterogeneity across the U.S. From a policy perspective, we suggest that state-level policies may specifically utilize the housing market to support consumption and growth.

Keywords: consumption; housing wealth effect; financial wealth effect; multi-step causality (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/13/3/1341/pdf (application/pdf)
https://www.mdpi.com/2071-1050/13/3/1341/ (text/html)

Related works:
Working Paper: Multi-Horizon Financial and Housing Wealth Effects across the U.S. States (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:3:p:1341-:d:488356

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().