Wealth shocks and macroeconomic dynamics

Arbeitspapier

The effect of wealth on consumption is an issue of longstanding interest to economists. Analysts believe that fluctuations in household wealth have driven major swings in economic activity. This paper considers so-called wealth effects - the impact of changes in wealth on household consumption and the overall macroeconomy. There is an extensive existing literature on wealth effects, but there are also many unanswered issues and questions. This paper reviews the important issues regarding the role wealth plays in the macroeconomy and argues that there is a need for much more wealth effect research as well as better data sources for conducting such analysis.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Public Policy Discussion Papers ; No. 13-4

Classification and Topics

• Classification: Wirtschaft ; Macroeconomics: Consumption; Saving; Wealth
• Subject: housing wealth ; financial wealth ; wealth effects ; consumption ; borrowing constraints ; saving ; household debt ; deleveraging

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cooper, Daniel ; Dynan, Karen
• Event: Veröffentlichung
• (who): Federal Reserve Bank of Boston
• (where): Boston, MA
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/99117
• Last update: 10.03.2025, 11:43 AM CET