The effects of financial and real wealth on consumption: new evidence from OECD countries
Riccardo De Bonis and
Andrea Silvestrini
Applied Financial Economics, 2012, vol. 22, issue 5, 409-425
Abstract:
In this article we present new estimates of the effect of household financial and real wealth on consumption. The analysis refers to 11 Organization for Economic Co-operation and Developoment (OECD) countries and takes into account quarterly data from 1997 to 2008. Unlike most of the previous literature on European countries, we measure financial wealth using quarterly harmonized data on household financial assets and liabilities, which have been gathered from the flow of funds. For comparison, we also employ as a proxy for financial wealth national share price indices. We rely on standard static panel and single-country level autoregressive distributed lag estimations. Furthermore, we implement a recent econometric approach that allows for more flexible assumptions in the nonstationary panel framework under consideration. Our results show that both net financial wealth and real wealth have a positive effect on consumption. Overall, the influence of net financial assets is stronger than that of real assets.
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)
Downloads: (external link)
http://hdl.handle.net/10.1080/09603107.2011.613773 (text/html)
Access to full text is restricted to subscribers.
Related works:
Working Paper: The effects of financial and real wealth on consumption: new evidence from OECD countries (2011) 
Working Paper: The Effects of Financial and Real Wealth on Consumption: New Evidence from OECD Countries (2010) 
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:taf:apfiec:v:22:y:2012:i:5:p:409-425
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAFE20
DOI: 10.1080/09603107.2011.613773
Access Statistics for this article
Applied Financial Economics is currently edited by Anita Phillips
More articles in Applied Financial Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().