Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18489
Authors: 
Slacalek, Jirka
Year of Publication: 
2006
Series/Report no.: 
DIW Discussion Papers 596
Abstract: 
This paper investigates the wealth effect for 16 industrial countries using the recently proposed technique that exploits the sluggishness of consumption growth. I estimate that the longrun marginal propensity to consume from wealth varies from less than 0.5 cents in France to 4.5 cents in the US. I document that the wealth effect tends to be larger in countries with more developed financial markets and has decreased in the last twenty years.
Subjects: 
wealth effect
income effect consumption dynamics sticky information
JEL: 
E21
C22
E32
Document Type: 
Working Paper

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