Arbeitspapier
Wealth effects and the consumption of Italian households in the Great Recession
We estimate marginal propensities to consume from wealth shocks for Italian households. Large asset price shocks in 2008 underpin an IV estimator. A euro fall in financial or risky financial wealth resulted in cuts in annual total (non-durable) consumption of 5-9 (3.5-6) cents. There is evidence of effects for food spending. Responses of total and non-durable spending to changes in housing wealth are 0.2 to 0.4 cents/euro. Counterfactuals indicate financial wealth effects were important (relative to other factors) for consumption falls in 2008/09. Thus wealth effects on consumption can be important for households' welfare and aggregate outcomes.
- Language
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Englisch
- Bibliographic citation
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Series: IFS Working Papers ; No. W13/21
- Classification
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Wirtschaft
Consumer Economics: Empirical Analysis
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Financial Crises
- Subject
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wealth effects
household consumption
- Event
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Geistige Schöpfung
- (who)
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Botazzi, Renata
Trucchi, Serena
Wakefield, Matthew
- Event
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Veröffentlichung
- (who)
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Institute for Fiscal Studies (IFS)
- (where)
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London
- (when)
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2013
- DOI
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doi:10.1920/wp.ifs.2013.1321
- Handle
- Last update
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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
- Botazzi, Renata
- Trucchi, Serena
- Wakefield, Matthew
- Institute for Fiscal Studies (IFS)
Time of origin
- 2013
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