Arbeitspapier
Wealth effects in the euro area
How sizable is the wealth effect on consumption in euro area countries? To address this question, we use newly available harmonized euro area wealth data and the methodology in Carroll et al. (2011b). We find that the marginal propensity to consume out of total wealth averaged across the largest euro area economies is around 3 cents per euro, with a marginal propensity to consume out of financial wealth significantly larger than of housing wealth. Country-group estimates document no significant differences between the largest economies and the rest of the sample. In contrast, remarkable differences emerge between periphery and core countries.
- ISBN
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978-92-899-3262-2
- Language
-
Englisch
- Bibliographic citation
-
Series: ECB Working Paper ; No. 2157
- Classification
-
Wirtschaft
Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
Macroeconomics: Consumption; Saving; Wealth
Business Fluctuations; Cycles
Financial Markets and the Macroeconomy
- Subject
-
households wealth
financial assets
consumption dynamics
wealth effects
- Event
-
Geistige Schöpfung
- (who)
-
Guerrieri, Cinzia
Mendicino, Caterina
- Event
-
Veröffentlichung
- (who)
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European Central Bank (ECB)
- (where)
-
Frankfurt a. M.
- (when)
-
2018
- DOI
-
doi:10.2866/505389
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Guerrieri, Cinzia
- Mendicino, Caterina
- European Central Bank (ECB)
Time of origin
- 2018
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Disaggregate income and wealth effects in the largest euro area countries
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Drivers of Wealth Inequality in Euro-Area Countries
Identifying income and wealth-poor households in the euro area
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International Wealth Effects
Uncertainty and spillover effects across the euro area
Price level changes and the redistribution of nominal wealth across the euro area
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