Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/265889 
Year of Publication: 
2021
Series/Report no.: 
ESRI Working Paper No. 710
Publisher: 
The Economic and Social Research Institute (ESRI), Dublin
Abstract: 
The performance of the Irish economy over the period 2002-2019 varied considerably, with a credit-led boom up to 2007 being followed by a sharp fall in economic activity and house prices in the following five years. This provides a valuable sample for investigating the relevance of the housing net worth channel to consumption developments. The evidence presented here indicates the channel being active during the 2007-2012 downturn with a fall in house prices causing a decline in consumption. It does not have an impact outside that downturn. Consequently, the results add to the international evidence of how an accumulation of household debt and a downturn in house prices has a substantial adverse impact on consumption.
Subjects: 
housing net worth channel
consumption
household debt
JEL: 
C22
E21
R21
Document Type: 
Working Paper

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