IDEAS home Printed from https://ideas.repec.org/a/cai/repdal/redp_244_0639.html
   My bibliography  Save this article

The Relationship between Consumption and Wealth: A Quantile Regression Approach

Author

Listed:
  • Fredj Jawadi
  • Ricardo M. Sousa

Abstract

This paper examines the wealth effects on consumption for the US, the UK and the Euro area using linear models and quantile regression approaches. We find that the elasticity of consumption with respect to aggregate wealth is largest for the UK, but housing wealth effects do not seem to be relevant in the Euro area. In addition, the sensitivity of consumption to changes in wealth is stronger when consumption growth is abnormally high. Overall, our results suggest that the link between consumption and wealth is significantly different across the distribution of consumption growth.

Suggested Citation

  • Fredj Jawadi & Ricardo M. Sousa, 2014. "The Relationship between Consumption and Wealth: A Quantile Regression Approach," Revue d'économie politique, Dalloz, vol. 124(4), pages 639-652.
    • Handle: RePEc:cai:repdal:redp_244_0639
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=REDP_244_0639
    Download Restriction: free
    File URL: http://www.cairn.info/revue-d-economie-politique-2014-4-page-639.htm
    Download Restriction: free
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yener Coskun & Nicholas Apergis & Esra Alp Coskun, 2022. "Nonlinear responses of consumption to wealth, income, and interest rate shocks," Empirical Economics, Springer, vol. 63(3), pages 1293-1335, September.
    2. Jawadi, Fredj & Soparnot, Richard & Sousa, Ricardo M., 2017. "Assessing financial and housing wealth effects through the lens of a nonlinear framework," Research in International Business and Finance, Elsevier, vol. 39(PB), pages 840-850.
    3. repec:hal:spmain:info:hdl:2441/20d1ncsepb9ssq3b3v4s6nbc41 is not listed on IDEAS
    4. Jawadi, Fredj & Jawadi, Nabila & Idi Cheffou, Abdoulkarim & Ben Ameur, Hachmi & Louhichi, Wael, 2017. "Modelling the effect of the geographical environment on Islamic banking performance: A panel quantile regression analysis," Economic Modelling, Elsevier, vol. 67(C), pages 300-306.
    5. Guerini, Mattia & Napoletano, Mauro & Roventini, Andrea, 2018. "No man is an Island: The impact of heterogeneity and local interactions on macroeconomic dynamics," Economic Modelling, Elsevier, vol. 68(C), pages 82-95.
    6. Nabila Jawadi & Fredj Jawadi & Abdoulkarim Idi Cheffou, 2020. "Computing the Time-Varying Effects of Investor Attention in Islamic Stock Returns," Computational Economics, Springer;Society for Computational Economics, vol. 56(1), pages 131-143, June.
    7. Yener Coskun & Burak Sencer Atasoy & Giacomo Morri & Esra Alp, 2018. "Wealth Effects on Household Final Consumption: Stock and Housing Market Channels," IJFS, MDPI, vol. 6(2), pages 1-32, June.
    8. Rudan Wang & Bruce Morley & Javier Ordóñez, 2016. "The Taylor Rule, Wealth Effects and the Exchange Rate," Review of International Economics, Wiley Blackwell, vol. 24(2), pages 282-301, May.
    9. Boldova Marzo, Daniel Miguel, 2022. "Análisis de la acumulación y distribución de la riqueza [Analysis of capital accumulation and weatlh distribution]," MPRA Paper 113582, University Library of Munich, Germany.
    10. Hiroaki Hayakawa, 2020. "Consumer behavior in a monetary economy and smoothing of composite consumption," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(1), pages 89-122, March.
    11. Andrew G. Haldane & Arthur E. Turrell, 2019. "Drawing on different disciplines: macroeconomic agent-based models," Journal of Evolutionary Economics, Springer, vol. 29(1), pages 39-66, March.
    12. repec:hal:spmain:info:hdl:2441/28ldm6et9r9pbak4qpf3imo9bj is not listed on IDEAS

    More about this item

    Keywords

    consumption; wealth;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:repdal:redp_244_0639. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-Baptiste de Vathaire (email available below). General contact details of provider: https://www.cairn.info/revue-d-economie-politique.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.