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Households' Response to Wealth Changes: Do Gains or Losses make a Difference? Author info | Abstract | Publisher info | Download info | Related research | Statistics Robert Paul Berben
Kerstin Bernoth
Mauro Mastrogiacomo
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We estimate the excess impact of financial asset capital losses relative to gains on household active savings and durable goods consumption in the Netherlands. The sample period covers both the stock market boom during the 90’s, and the bear period afterwards. The results suggest that households react more to capital losses than to capital gains. Failing to take into account this asymmetry may seriously bias the estimates of the marginal propensity to consume out of wealth.
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Paper provided by Netherlands Central Bank, Research Department in its series DNB Working Papers with number
090.
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Date of creation: Feb 2006Date of revision:
Handle: RePEc:dnb:dnbwpp:090Contact details of provider: Postal: Postbus 98, 1000 AB Amsterdam Web page: http://www.dnb.nl/dnb/home?lang=en More information through EDIRC
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Keywords: Household savings wealth effect capital gains Other versions of this item:
Find related papers by JEL classification: D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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