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Wealth Effects on Consumption across the Wealth Distribution: Empirical Evidence

Luc Arrondel (), Pierre Lamarche and Frédérique Savignac

Working papers from Banque de France

Abstract: This paper studies the heterogeneity of the marginal propensity to consume out of wealth using French household surveys. We find decreasing marginal propensity to consume out of wealth across the wealth distribution for all net wealth components. The marginal propensity to consume out of financial assets tend to be higher compared with the effect of housing assets, excepted in the top of the wealth distribution. Consumption is less sensitive to the value of the main residence than to other housing assets. We also investigate the heterogeneity arising from indebtedness and from the role of housing assets as collateral.

Keywords: Consumption; Marginal propensity to consume out of wealth; Policy distributive effects; Households survey. (search for similar items in EconPapers)
JEL-codes: D12 E21 C21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac, nep-pbe and nep-ure
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

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Working Paper: Wealth effects on consumption across the wealth distribution: empirical evidence (2015) Downloads
Working Paper: Wealth Effects on Consumption across the Wealth Distribution: Empirical Evidence (2015) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:552

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