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dc.contributor.authorChristelis, Dimitrisen_US
dc.contributor.authorGeorgarakos, Dimitrisen_US
dc.contributor.authorJappelli, Tullioen_US
dc.date.accessioned2011-11-10en_US
dc.date.accessioned2012-04-20T17:08:58Z-
dc.date.available2012-04-20T17:08:58Z-
dc.date.issued2011en_US
dc.identifier.piurn:nbn:de:hebis:30:3-241104-
dc.identifier.urihttp://hdl.handle.net/10419/57347-
dc.description.abstractWe use data from the 2009 Internet Survey of the Health and Retirement Study to examine the consumption impact of wealth shocks and unemployment during the Great Recession in the US. We find that many households experienced large capital losses in housing and in their financial portfolios, and that a non-trivial fraction of respondents have lost their job. As a consequence of these shocks, many households reduced substantially their expenditures. We estimate that the marginal propensities to consume with respect to housing and financial wealth are 1 and 3.3 percentage points, respectively. In addition, those who became unemployed reduced spending by 10 percent. We also distinguish the effect of perceived transitory and permanent wealth shocks, splitting the sample between households who think that the stock market is likely to recover in a year's time, and those who don't. In line with the predictions of standard models of intertemporal choice, we find that the latter group adjusted much more than the former its spending in response to financial wealth shocks.en_US
dc.language.isoengen_US
dc.publisherCenter for Financial Studies Frankfurt, Mainen_US
dc.relation.ispartofseriesCFS Working Paper 2011/27en_US
dc.subject.jelE21en_US
dc.subject.jelD91en_US
dc.subject.ddc330en_US
dc.subject.keywordMarginal Propensity to Consumeen_US
dc.subject.keywordWealth Shocksen_US
dc.subject.keywordUnemploymenten_US
dc.subject.stwWirtschaftskriseen_US
dc.subject.stwVermögenseffekten_US
dc.subject.stwGesamtwirtschaftlicher Konsumen_US
dc.subject.stwArbeitslosigkeiten_US
dc.subject.stwUSAen_US
dc.titleWealth shocks, unemployment shocks and consumption in the wake of the Great Recessionen_US
dc.typeWorking Paperen_US
dc.identifier.ppn671918419en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:cfswop:201127-
Appears in Collections:CFS Working Paper Series, Universität Frankfurt a. M.

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