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Comparing Wealth Effects: The Stock Market versus the Housing Market Author info | Abstract | Publisher info | Download info | Related research | Statistics Karl Case (Wellesley College)
John Quigley (University of California, Berkeley)
Robert Shiller (Yale University)
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We examine the link between increases in housing wealth, financial wealth, and consumer spending. We rely upon a panel of 14 countries observed annually for various periods during the past 25 years and a panel of U.S. states observed quarterly during the 1980s and 1990s. We impute the aggregate value of owner-occupied housing, the value of financial assets, and measures of aggregate consumption for each of the geographic units over time. We estimate regression models in levels, first differences and in error-correction form, relating consumption to income and wealth measures. We find a statistically significant and rather large effect of housing wealth upon household consumption.
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Article provided by Berkeley Electronic Press in its journal Advances in Macroeconomics .
Volume (Year): 5 (2005)
Issue (Month): 1 ()
Pages: 1235-1235
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Keywords: consumption nonfinancial wealth housing market real estate Other versions of this item:
Paper Karl E. Case, John M. Quigley, Robert J. Shiller., 2001.
"Comparing Wealth Effects: The Stock Market versus The Housing Market ,"
Economics Working Papers
E01-308, University of California at Berkeley.
[Downloadable!] Karl E. Case & John M. Quigley & Robert J. Shiller, 2001.
"Comparing Wealth Effects: The Stock Market versus the Housing Market ,"
Cowles Foundation Discussion Papers
1335, Cowles Foundation, Yale University.
[Downloadable!] Karl E. Case & Robert J. Shiller & John M. Quigley, 2001.
"Comparing Wealth Effects: The Stock Market Versus the Housing Market ,"
NBER Working Papers
8606, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Find related papers by JEL classification: E2 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment
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