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Disentangling the wealth effect: some international evidence

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  • Eva Sierminska
  • Yelena Takhtamanova

Abstract

In this Economic Letter, we report on research that takes advantage of newly available international data and examines in some detail the wealth effect in three countries, Canada, Finland, and Italy (Sierminska and Takhtamanova 2007). First, we investigate whether consumption responds differently to changes in housing and financial wealth. Second, we investigate whether there are differences in consumption responses to changes in wealth across different age groups.

Suggested Citation

  • Eva Sierminska & Yelena Takhtamanova, 2007. "Disentangling the wealth effect: some international evidence," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue jan19.
    • Handle: RePEc:fip:fedfel:y:2007:i:jan19:n:2007-02
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    File URL: https://www.frbsf.org/research-and-insights/publications/economic-letter/2007/01/housing-financial-wealth-canada-finland-italy/
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    File URL: https://fraser.stlouisfed.org/files/docs/historical/frbsf/frbsf_let/frbsf_let_20070119.pdf
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    File URL: https://fraser.stlouisfed.org/title/economic-letter-federal-reserve-bank-san-francisco-4960/disentangling-wealth-effect-633351
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    References listed on IDEAS

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    1. Luigi Guiso & Monica Paiella & Ignazio Visco, 2005. "Do capital gains affect consumption? Estimates of wealth effects from Italian households� behavior," Temi di discussione (Economic working papers) 555, Bank of Italy, Economic Research and International Relations Area.
    2. Bostic, Raphael & Gabriel, Stuart & Painter, Gary, 2009. "Housing wealth, financial wealth, and consumption: New evidence from micro data," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 79-89, January.
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    Cited by:

    1. Dimitrios Gounopoulos & Andreas G. Merikas & Anna A. Merika & Anna Triantafyllou, 2012. "Explaining house price changes in Greece," Applied Financial Economics, Taylor & Francis Journals, vol. 22(7), pages 549-561, April.
    2. Eva Sierminska & Yelena Takhtamanova, 2008. "The Effect of Wealth on Consumption Expenditures: Cross Country and Cross Socio-Demographic Group Comparisons," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 20.
    3. Gérard Duménil & Dominique Lévy, 2014. "The crisis of the early 21st Century: Marxian perspectives," Chapters, in: Riccardo Bellofiore & Giovanna Vertova (ed.), The Great Recession and the Contradictions of Contemporary Capitalism, chapter 2, pages 26-49, Edward Elgar Publishing.

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