Arbeitspapier
Wealth shocks, unemployment shocks and consumption in the wake of the Great Recession
We use data from the 2009 Internet Survey of the Health and Retirement Study to examine the consumption impact of wealth shocks and unemployment during the Great Recession in the US. We find that many households experienced large capital losses in housing and in their financial portfolios, and that a non-trivial fraction of respondents have lost their job. As a consequence of these shocks, many households reduced substantially their expenditures. We estimate that the marginal propensities to consume with respect to housing and financial wealth are 1 and 3.3 percentage points, respectively. In addition, those who became unemployed reduced spending by 10 percent. We also distinguish the effect of perceived transitory and permanent wealth shocks, splitting the sample between households who think that the stock market is likely to recover in a year's time, and those who don't. In line with the predictions of standard models of intertemporal choice, we find that the latter group adjusted much more than the former its spending in response to financial wealth shocks.
- Sprache
-
Englisch
- Erschienen in
-
Series: CFS Working Paper ; No. 2011/27
- Klassifikation
-
Wirtschaft
Macroeconomics: Consumption; Saving; Wealth
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
- Thema
-
Marginal Propensity to Consume
Wealth Shocks
Unemployment
Wirtschaftskrise
Vermögenseffekt
Gesamtwirtschaftlicher Konsum
Arbeitslosigkeit
USA
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Christelis, Dimitris
Georgarakos, Dimitris
Jappelli, Tullio
- Ereignis
-
Veröffentlichung
- (wer)
-
Goethe University Frankfurt, Center for Financial Studies (CFS)
- (wo)
-
Frankfurt a. M.
- (wann)
-
2011
- Handle
- URN
-
urn:nbn:de:hebis:30:3-241104
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Christelis, Dimitris
- Georgarakos, Dimitris
- Jappelli, Tullio
- Goethe University Frankfurt, Center for Financial Studies (CFS)
Entstanden
- 2011
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