EconPapers    
Economics at your fingertips  
 

Financial and Housing Wealth Effects on Private Consumption: The Case of Greece

Ersi Athanassiou and Ekaterini Tsouma ()

South-Eastern Europe Journal of Economics, 2017, vol. 15, issue 1, 63-86

Abstract: This paper investigates the effects of household wealth on consumption expenditure in Greece. Recognising the distinct and leading role of housing in the wealth portfolios of Greek households, we disentangle financial wealth effects from housing wealth effects, to assess the impact of these two wealth components separately. This type of analysis is being conducted for the first time for the case of Greece, and employs quarterly data for the time period 2000-2015, including a novel series on housing wealth constructed for the purpose of the paper. The results of the analysis point to the existence of a statistically significant cointegrating relationship between consumption and wealth, with positive financial and housing wealth effects in the long run. In the short run, both wealth components appear to play a role in determining consumption, with the effects of housing wealth being more pronounced.

Keywords: Wealth Effects; Private Consumption; Cointegration; Greece (search for similar items in EconPapers)
JEL-codes: E21 C22 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.asecu.gr/Seeje/issue28//issue28-athanassiou-tsouma.pdf (application/pdf)

Related works:
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:seb:journl:v:15:y:2017:i:1:p:63-86

Access Statistics for this article

More articles in South-Eastern Europe Journal of Economics from Association of Economic Universities of South and Eastern Europe and the Black Sea Region Contact information at EDIRC.
Bibliographic data for series maintained by Ms. Melina Petromelidou ().

 
Page updated 2019-12-14
Handle: RePEc:seb:journl:v:15:y:2017:i:1:p:63-86