| Description |
1 online resource (33 pages) |
| Series |
IMF Working Paper ; WP/19/115 |
|
IMF working paper ; WP/19/115.
|
| Contents |
Data and empirical methodology -- Macro-based evidence -- Micro-based evidence: main results |
| Summary |
This paper analyzes the existence of 'wealth effects' derived from net equity (in the form of housing, financial assets, and total net worth) on consumption. The study uses longitudinal household-level data?from the Panel Study of Income Dynamics (PSID)?covering about 7,000-9,000 households in the U.S., with the estimations carried over the period 1999-2017. Overall, wealth effects are found to be relatively large and significant for housing wealth, but less so for other types of wealth, including stocks. Furthermore, the analysis shows how these estimated marginal propensities to consume (MPC) from wealth are closely linked to household characteristics, including income and demographic factors. Finally, underlying structural changes in household characteristics point to potentially lower aggregate MPCs from wealth going forward |
| Notes |
Online resource; title from PDF title page (IMF, viewed Sept. 3, 2020) |
| Subject |
Consumption (Economics) -- United States
|
|
Wealth -- United States
|
|
Consumption (Economics)
|
|
Wealth
|
|
United States
|
| Form |
Electronic book
|
| Author |
International Monetary Fund, issuing body.
|
| ISBN |
1498317227 |
|
9781498317221 |
|
