International Wealth Effects

Arbeitspapier

This paper investigates the wealth effect for 16 industrial countries using the recently proposed technique that exploits the sluggishness of consumption growth. I estimate that the longrun marginal propensity to consume from wealth varies from less than 0.5 cents in France to 4.5 cents in the US. I document that the wealth effect tends to be larger in countries with more developed financial markets and has decreased in the last twenty years.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DIW Discussion Papers ; No. 596

Classification and Topics

• Classification: Wirtschaft ; Macroeconomics: Consumption; Saving; Wealth ; Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes ; Business Fluctuations; Cycles
• Subject: wealth effect ; income effect consumption dynamics sticky information

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Slacalek, Jirka
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/18489
• Last update: 10.03.2025, 11:41 AM CET