A Note On Housing Wealth And Private Consumption
This paper analyses the relationship between house prices and private consumption of the US economy. Based on Granger's causality test, we ask whether this relationship is driven by causality or whether it is merely an ambiguous connection. Based on latest quartely data, our results show that there is indeed a causal relationship with changes in house prices affeting private consumption, fundamentally supporting economic theory. Considering existing research, it is therefore suggested that the US economy is at the outset of a severe economic downturn, confirming pessimist's expectations.
Volume (Year): 1 (2009)
Issue (Month): 2 (October) ()
|Contact details of provider:|| Web page: http://www2.spiruharet.ro/facultati/facultate.php?id=9|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:shc:jaresh:v:1:y:2009:i:2:p:119-128. 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: (Claudiu Chiru)
If references are entirely missing, you can add them using this form.