Document Type
Discussion Paper
Publication Date
10-1-2001
CFDP Number
1335
CFDP Pages
25
Abstract
We examine the link between increases in housing wealth, financial wealth, and consumer spending. We rely upon a panel of 14 countries observed annually for various periods during the past 25 years and a panel of U.S. states observed quarterly during the 1980s and 1990s. We impute the aggregate value of owner-occupied housing, the value of financial assets, and measures of aggregate consumption for each of the geographic units over time. We estimate regressions relating consumption to income and wealth measures, finding a statistically significant and rather large effect of housing wealth upon household consumption.
Recommended Citation
Case, Karl E.; Quigley, John M.; and Shiller, Robert J., "Comparing Wealth Effects: The Stock Market Versus the Housing Market" (2001). Cowles Foundation Discussion Papers. 1597.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1597