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What drives household consumption in the EU-28?

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  • Bouyon, Sylvain

Abstract

Given that final consumption of households has contributed on average to broadly 60% of EU-28 GDP since 2001, an assessment of the drivers behind its dynamics is quite timely in a context of gradual economic recovery. The empirical analyses presented in this ECRI Commentary, covering 19 of the EU-28 economies, suggest that disposable income of households, consumer credit markets and the developments in housing markets have had a significantly positive impact on the growth of household final consumption since 2001. On the other hand, demographic trends do not seem to have played any significant role.

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  • Bouyon, Sylvain, 2015. "What drives household consumption in the EU-28?," ECRI Papers 11148, Centre for European Policy Studies.
    • Handle: RePEc:eps:ecriwp:11148
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    References listed on IDEAS

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    1. Campbell, John Y. & Cocco, Joao F., 2007. "How do house prices affect consumption? Evidence from micro data," Journal of Monetary Economics, Elsevier, vol. 54(3), pages 591-621, April.
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