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Wealth Effects in the US: Evidence from the Combination of Two Surveys

  • SIMONE SALOTTI

    (National University of Ireland Galway)

In this article we investigate the role of wealth in household consumption during the period 1989-2007 using a household-level cross sectional dataset. We combine information from the Consumer Expenditure Survey and the Survey of Consumer Finances to build a detailed dataset for the US for this. We adopt a sample combination procedure which differs considerably from that used earlier by other researchers. When comparing our results with previous research, we find a higher elasticity of consumption with respect to income and a lower elasticity of consumption with respect to both housing wealth and, particularly, to financial wealth.

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File URL: http://www.esr.ie/vol43_1/03%20Salotti.pdf
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Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 43 (2012)
Issue (Month): 1 ()
Pages: 67–98

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Handle: RePEc:eso:journl:v:43:y:2012:i:1:p:67-98
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