Residential and stock market effects on consumption across Europe.

Detalhes bibliográficos
Autor(a) principal: Pacheco, Luís Miguel
Data de Publicação: 2005
Outros Autores: Barata, José Martins
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/11328/836
Resumo: The aim of this paper is to explain private consumption as a function of income and wealth with data from European Union countries. To examine how the developments in housing and stock markets may have affected consumption behaviour, we adopt two econo- metric procedures. First, we use the Stock–Watson procedure to account for wealth effects on consumption over the long run. Second, through an error-correction model we measure wealth effects on consumption over the short run. We found significant albeit mixed values for the long-run elasticities of consumption with respect to real residential and equity prices. We also found strong evidence that consumption exhibits error-correction behaviour in the short run, with the value of the error-correction term signifying that household consumption takes several quarters to completely respond to changes in the markets.
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spelling Residential and stock market effects on consumption across Europe.Housing pricesAsset pricesWealth effectsConsumptionEuropean UnionDynamic ordinary least squaresError-correction modelsThe aim of this paper is to explain private consumption as a function of income and wealth with data from European Union countries. To examine how the developments in housing and stock markets may have affected consumption behaviour, we adopt two econo- metric procedures. First, we use the Stock–Watson procedure to account for wealth effects on consumption over the long run. Second, through an error-correction model we measure wealth effects on consumption over the short run. We found significant albeit mixed values for the long-run elasticities of consumption with respect to real residential and equity prices. We also found strong evidence that consumption exhibits error-correction behaviour in the short run, with the value of the error-correction term signifying that household consumption takes several quarters to completely respond to changes in the markets.2014-07-14T11:13:22Z2005-01-01T00:00:00Z2005info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/11328/836eng1461-6718Pacheco, Luís MiguelBarata, José Martinsinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-06-15T02:09:06ZPortal AgregadorONG
dc.title.none.fl_str_mv Residential and stock market effects on consumption across Europe.
title Residential and stock market effects on consumption across Europe.
spellingShingle Residential and stock market effects on consumption across Europe.
Pacheco, Luís Miguel
Housing prices
Asset prices
Wealth effects
Consumption
European Union
Dynamic ordinary least squares
Error-correction models
title_short Residential and stock market effects on consumption across Europe.
title_full Residential and stock market effects on consumption across Europe.
title_fullStr Residential and stock market effects on consumption across Europe.
title_full_unstemmed Residential and stock market effects on consumption across Europe.
title_sort Residential and stock market effects on consumption across Europe.
author Pacheco, Luís Miguel
author_facet Pacheco, Luís Miguel
Barata, José Martins
author_role author
author2 Barata, José Martins
author2_role author
dc.contributor.author.fl_str_mv Pacheco, Luís Miguel
Barata, José Martins
dc.subject.por.fl_str_mv Housing prices
Asset prices
Wealth effects
Consumption
European Union
Dynamic ordinary least squares
Error-correction models
topic Housing prices
Asset prices
Wealth effects
Consumption
European Union
Dynamic ordinary least squares
Error-correction models
description The aim of this paper is to explain private consumption as a function of income and wealth with data from European Union countries. To examine how the developments in housing and stock markets may have affected consumption behaviour, we adopt two econo- metric procedures. First, we use the Stock–Watson procedure to account for wealth effects on consumption over the long run. Second, through an error-correction model we measure wealth effects on consumption over the short run. We found significant albeit mixed values for the long-run elasticities of consumption with respect to real residential and equity prices. We also found strong evidence that consumption exhibits error-correction behaviour in the short run, with the value of the error-correction term signifying that household consumption takes several quarters to completely respond to changes in the markets.
publishDate 2005
dc.date.none.fl_str_mv 2005-01-01T00:00:00Z
2005
2014-07-14T11:13:22Z
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