International Wealth Effects

This paper investigates the wealth effect for 16 industrial countries using the recently proposed technique that exploits the sluggishness of consumption growth. I estimate that the longrun marginal propensity to consume from wealth varies from less than 0.5 cents in France to 4.5 cents in the US. I document that the wealth effect tends to be larger in countries with more developed financial markets and has decreased in the last twenty years.

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Year of publication:	2006
Authors:	Slacalek, Jirka
Publisher:	Berlin : Deutsches Institut für Wirtschaftsforschung (DIW)
Subject:	wealth effect \| income effect consumption dynamics sticky information

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Series:	DIW Discussion Papers ; 596
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	51414680X [GVK] hdl:10419/18489 [Handle] RePEc:diw:diwwpp:dp596 [RePEc]
Classification:	E21 - Consumption; Saving ; C22 - Time-Series Models ; E32 - Business Fluctuations; Cycles
Source:	EconStor