Document Type
Discussion Paper
Publication Date
4-1-2004
CFDP Number
1459
CFDP Pages
16
Abstract
It is widely claimed that housing wealth, as well as stock prices, have an impact on consumption and hence on aggregate economic activity. This paper presents a broad overview of the issues that arise in evaluating this claim in the context of recent research in behavioral economics. Particular attention is paid to a model of the response of consumption to wealth components produced by Christopher Carroll [2004].
Recommended Citation
Shiller, Robert J., "Household Reaction to Changes in Housing Wealth" (2004). Cowles Foundation Discussion Papers. 1735.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1735