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Gerlach-Kristen, Petra
O'Connell, Brian
O'Toole, Conor
Year of Publication: 
Series/Report no.: 
ESRI Working Paper 464
This paper considers the effect of systemic financial crises on aggregate consumption. Using a sample of 23 countries over 32 years, we find that consumption growth seems lower during banking crises, crises following credit booms and crises following house price booms. Moreover, the response to income growth seems to change, which may be due to credit constraints. In the long run, consumption appears to be linked to income, housing and other financial wealth.
Financial Crises
Housing Wealth
Panel Error Correction Model
Weak Exogeneity
Document Type: 
Working Paper

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