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Housing booms, non-financial wealth and consumption : lessons from the Australian experience

Please use this identifier to cite or link to this item: http://hdl.handle.net/1959.14/145788

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Title: Housing booms, non-financial wealth and consumption : lessons from the Australian experience
Related: Australian Conference of Economists (35th : 2006) (25 - 27 September 2006 : Perth)
Related: Harry Block, Garry MacDonald. Proceedings of the 35th Australian Conference of Economists
Related: http://www.business.curtin.edu.au/files/Fisher_Otto_Voss.pdf
Publisher: Perth : Curtin University of Technology
Date: 2006
FoR/RFCD Code(s): 140200 Applied Economics
Author/Creator: Fisher, Lance A
Author/Creator: Otto, Glenn
Author/Creator: Voss, Graham M
Description: Since a relatively high share of private wealth in Australia is held in the form of housing, we extend the approach of Lettau and Ludvigson (2004) to estimate the transitory component of both financial and non-financial (mainly housing) wealth. We estimate the transitory component of non-financial wealth to be large relative to the transitory component of consumption and find little evidence that private consumption expenditure significantly responds to transitory fluctuations in either total or non-financial wealth. We conclude that Australian households have largely ignored the effect of cyclical fluctuations in house prices on their wealth when choosing their consumption path.
Description: 40 page(s)
Subject Keyword: 140200 Applied Economics
Subject Keyword: consumption
Subject Keyword: wealth
Subject Keyword: housing wealth
Subject Keyword: cointegration
Subject Keyword: permanent and transitory
Resource Type: conference paper
Organisation: Macquarie University. Dept. of Economics

Identifier: http://hdl.handle.net/1959.14/145788
Identifier: ISBN:1740675010
Identifier: mq-rm-2009001158
Language: eng
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