The Impact of the Housing Market Boom and Bust on Consumption Spending
While econometric evidence for the United States has consistently shown that increases in real estate wealth induce additional consumption, it does not directly speak to the effect of a substantial decrease in real estate wealth. This paper examines the real-estate wealth-consumption relationship over the past half century with a particular focus on the sharp decline in 2006–08, and finds that the wealth effect in the recent down market is significantly larger than in an up market. Additionally, wealth changes seem only to affect consumption of services and nondurable goods; there is virtually no impact on durable-goods consumption.
Volume (Year): 45 (2010)
Issue (Month): 2 (April)
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
Postal:1233 20th Street NW #505, Washington DC 20036
Web page: https://www.nabe.com/
More information through EDIRC
|Order Information:||Web: http://www.springer.com/economics/journal/11369|
When requesting a correction, please mention this item's handle: RePEc:pal:buseco:v:45:y:2010:i:2:p:83-93. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.