Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/171140
Authors: 
Arrondel, Luc
Lamarche, Pierre
Savignac, Frédérique
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper No. 6676
Abstract: 
This paper studies the heterogeneity of the marginal propensity to consume out of wealth based on French household surveys. This heterogeneity is driven by differences in both wealth composition and wealth levels. We find a decreasing marginal propensity to consume out of wealth across the wealth distribution for all net wealth components. The marginal propensity to consume out of financial assets tends to be higher compared with the effect of housing assets, except at the top of the wealth distribution. The marginal propensity to consume out of housing wealth increases with debt pressure and depends on debt composition. Based on a simulation exercise, we find a limited effect of wealth shocks on consumption inequality. An increase in stock prices tends however to slightly increase consumption inequality, especially at the top of the distribution.
Subjects: 
consumption
marginal propensity to consume out of wealth
policy distributive effects
household survey
JEL: 
D12
E21
C21
Document Type: 
Working Paper

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