Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/99117
Authors: 
Cooper, Daniel
Dynan, Karen
Year of Publication: 
2013
Series/Report no.: 
Public Policy Discussion Papers, Federal Reserve Bank of Boston 13-4
Abstract: 
The effect of wealth on consumption is an issue of longstanding interest to economists. Analysts believe that fluctuations in household wealth have driven major swings in economic activity. This paper considers so-called wealth effects - the impact of changes in wealth on household consumption and the overall macroeconomy. There is an extensive existing literature on wealth effects, but there are also many unanswered issues and questions. This paper reviews the important issues regarding the role wealth plays in the macroeconomy and argues that there is a need for much more wealth effect research as well as better data sources for conducting such analysis.
Subjects: 
housing wealth
financial wealth
wealth effects
consumption
borrowing constraints
saving
household debt
deleveraging
JEL: 
E21
Document Type: 
Working Paper

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