Consumption, house prices and expectations
نویسندگان
چکیده
3
منابع مشابه
Booms and Busts: Consumption, House Prices and Expectations
Over much of the past 25 years, the cycles of house price and consumption growth have been closely synchronised. Three main hypotheses for this co-movement have been proposed in the literature. First, that an increase in house prices raises households' wealth, particularly for those in a position to trade down the housing ladder, which increases their desired level of expenditure. Second, that ...
متن کاملHouse Prices and Consumption: A Micro Study
Empirical evidence shows that house prices and consumption are closely synchronized. However, previous contributions disagree over the causes of this link. According to the life cycle model, households plan lifetime consumption based on their expectations about the development in their total wealth, including housing wealth, and households should only react to innovations in house prices. Howev...
متن کاملTrend growth expectations and U.S. house prices before and after the crisis
We provide an analysis that might help distinguish rationally justified movements in house prices from potentially non-rational movements, using a two-sector business cycle model, in which investment in housing is subject to collateral constraints. A large portion of the evolution of U.S. house prices during the past 20 years can be reproduced when expectations of future income growth as publis...
متن کاملHow Do House Prices Affect Consumption? Evidence from Micro Data
Housing is a major component of wealth. Since house prices fluctuate considerably over time, it is important to understand how these fluctuations affect households’ consumption decisions. Rising house prices may stimulate consumption by increasing households’ perceived wealth, or by relaxing borrowing constraints. This paper investigates the response of household consumption to house prices usi...
متن کاملHousing Wealth and Consumption: A Micro Panel Study
There is strong evidence that house prices and consumption are closely synchronized. There is, however, disagreement over the causes of this link. This paper examines if there is a wealth effect of house prices on consumption. We use a rich household level panel data set with information about house ownership, income, wealth, and demographics for a large sample of the Danish population in the p...
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تاریخ انتشار 2005