Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/183339
Authors: 
Guerrieri, Cinzia
Mendicino, Caterina
Year of Publication: 
2018
Series/Report no.: 
ECB Working Paper 2157
Abstract: 
How sizable is the wealth effect on consumption in euro area countries? To address this question, we use newly available harmonized euro area wealth data and the methodology in Carroll et al. (2011b). We find that the marginal propensity to consume out of total wealth averaged across the largest euro area economies is around 3 cents per euro, with a marginal propensity to consume out of financial wealth significantly larger than of housing wealth. Country-group estimates document no significant differences between the largest economies and the rest of the sample. In contrast, remarkable differences emerge between periphery and core countries.
Subjects: 
households wealth
financial assets
consumption dynamics
wealth effects
JEL: 
C22
E21
E32
E44
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-3262-2
Document Type: 
Working Paper

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