Please use this identifier to cite or link to this item:
Author: Kontana, Dimitra
Title: The clash of the Titans: financial and housing wealth effects on consumption
Date Issued: 2017
Department: Διατμηματικό Πρόγραμμα Μεταπτυχιακών Σπουδών στην Οικονομική Επιστήμη
Supervisor: Siokis, Fotios
Abstract: In this paper, we examine and compare the effects of the financial and housing wealth on consumption. By using quarterly data from the United States economy, we investigate the impact of financial and housing wealth on consumption. Based on the seminal paper of Case, Quigley and Shiller (2013) and expanding the sample size by including the periods from the first quarter of 2012 to the first quarter of 2016, we found that stock market wealth has a greater impact on consumption than housing wealth. Specifically, in our basic model that was utilized in the present study, the elasticity was 0.064 for stock wealth and 0.045 for housing respectively. These results are not in agreement with the ones obtained by Case, Quigley and Shiller. In a next stage, we divided our data into two groups, based on the calculated United States average income: a) in the first group were included the 26 States with the highest average income, from 1975 to 2016, according to the Federal Reserve Economic Data, and b) in the second group, the 25 States with income below the United States average. Finally, all the above process was repeated only for the period 1986-2016. The results showed that for the top 26 States stock wealth effects were greater than housing effects, whereas the effects for the U.S. states with a lower income were the opposite. The results proved to be more robust for the sample period between 1986 and 2016.
Keywords: Consumption
Financial wealth
Housing wealth
Information: Διπλωματική εργασία--Πανεπιστήμιο Μακεδονίας, Θεσσαλονίκη, 2017.
Appears in Collections:ΔΠΜΣ Οικονομική Επιστήμη (M)

Files in This Item:
File Description SizeFormat 
KontanaDimitraMsc2017.pdf3.32 MBAdobe PDFView/Open

Items in Psepheda are protected by copyright, with all rights reserved, unless otherwise indicated.