Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153976
Authors: 
Stracca, Livio
Year of Publication: 
2013
Series/Report no.: 
ECB Working Paper 1543
Abstract: 
This paper uses Eurobarometer survey data from 26 EU countries to evaluate whether the general public cares about financial stability and imbalances over and above their effects on key macroeconomic variables such as unemployment and inflation. I confirm previous results in the literature that life satisfaction - a widely used measure of household welfare - negatively depends on the unemployment rate. In addition to previous results in the literature, I establish a strong empirical link between life satisfaction and consumer confidence as measured by the European Commission consumer survey. The main result of the paper is that life satisfaction generally does not systematically depend on a number of measures of financial imbalance based on credit and asset prices once the other macroeconomic controls are included.
Subjects: 
Central Bank
Consumer Confidence
Eurobarometer
financial stability
life satisfaction
JEL: 
E6
Document Type: 
Working Paper

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