Arbeitspapier
Stock Market Returns and Consumption
This paper employs Swedish data on households' stock holdings to investigate how consumption responds to changes in stock market returns. We instrument the actual capital gains and dividend payments with past portfolio weights. Unrealized capital gains lead to a marginal propensity to consume (MPC) of 13 percent for the bottom 50% of the wealth distribution, but a flat 5 percent for the rest of the distribution. Households' consumption is significantly more responsive to dividend payouts across all parts of the wealth distribution. Our findings are consistent with households treating capital gains and dividends as separate sources of income.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 2018:1
- Klassifikation
-
Wirtschaft
Intertemporal Household Choice; Life Cycle Models and Saving
Macroeconomics: Consumption; Saving; Wealth
Asset Pricing; Trading Volume; Bond Interest Rates
- Thema
-
Capital gain
Dividend income
Consumption
Near-rational behavior
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Di Maggio, Marco
Kermani, Amir
Majlesi, Kaveh
- Ereignis
-
Veröffentlichung
- (wer)
-
Lund University, School of Economics and Management, Department of Economics
- (wo)
-
Lund
- (wann)
-
2018
- Handle
- Letzte Aktualisierung
-
17.05.2025, 20:43 MESZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Di Maggio, Marco
- Kermani, Amir
- Majlesi, Kaveh
- Lund University, School of Economics and Management, Department of Economics
Entstanden
- 2018
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