Asset Holding and Consumption: Evidence from Japanese Panel Data in the 1990s

Masahiro Hori and Satoshi Shimizutani

ESRI Discussion paper series from Economic and Social Research Institute (ESRI)

Abstract: The 1990s crash in Japan's stock and land market should have had adverse effects on household consumption. This paper takes advantage of a panel data from Japanese households to evaluate the impacts of the wealth gains or losses on households' spending. We obtain the following empirical findings. First, stockholders' consumption is responsive to stock market movements while this is not the case for non-stockholders, suggesting the importance of "direct" wealth effects. Second, we compared the marginal propensity to consume (MPC) out of stock price changes and real estate price changes, and found that they are roughly comparable. The MPC out of wealth gains or losses is estimated to be 0.05 to 0.1 slightly higher than estimates reported in previous studies on Japanese consumption using aggregate data.

Pages: 21 pages
Date: 2003-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.esri.go.jp/jp/archive/e_dis/e_dis060/e_dis055a.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.esri.go.jp:80 (No such host is known. )

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:esj:esridp:055

Access Statistics for this paper

More papers in ESRI Discussion paper series from Economic and Social Research Institute (ESRI) Contact information at EDIRC.
Bibliographic data for series maintained by HORI nobuko ( this e-mail address is bad, please contact ).