Do House Prices Affect Consumption? A Re-assessment of the Wealth Hypothesis

C-Tier
Journal: Economica
Year: 2014
Volume: 81
Issue: 324
Pages: 601-625

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

type="main" xml:id="ecca12098-abs-0001" xml:lang="en"> <p>This paper revives the debate in the literature about the relationship between house prices and consumption by exploring conflicting results in the UK. Campbell and Cocco (<link href="#ecca12098-bib-0008"/>) find that old owners benefit most from a house price increase and young renters least, confirming the so-called wealth hypothesis. In contrast, Attanasio et al. (<link href="#ecca12098-bib-0004"/>) find that house prices have the same impact on consumption across age groups. We rule out several potential explanations related to data construction, and provide evidence that the functional form can reconcile the conflicting results in the two papers.

Technical Details

RePEc Handle
repec:bla:econom:v:81:y:2014:i:324:p:601-625
Journal Field
General
Author Count
2
Added to Database
2026-01-25