We use detailed data on housing prices in Italy available for a large number of years and with a fine geographical … breakdown to compute capital gains and losses on the most widespread asset among consumers, housing, and inquire whether changes … in housing values affect consumption. We find that consumer expenditures do react to capital gains, with a marginal …

Asia and Central and Eastern Europe, over the period 1995-2011. Linking housing valuations to a set of conventional … a somewhat slow adjustment to shocks to the latter. Moreover, the evidence that housing valuations may be driven by …

In this paper we show that long-run expectations about future housing prices of both households and, especially …, financial intermediaries had a large impact on households' indebtedness during the recent boom in U.S. housing prices. We …: (1) that mild variations in long-run forecasts of housing prices result in large differences in the amount of home equity …

household consumption positively in the long-run, with the elasticity of housing wealth being greater than that of stock market … vulnerable to further adverse developments in the housing market. …

Keynesian model with a housing sector and financial frictions on the household side. We show that the social welfare maximizing … monetary policy rule features a reaction to house price variations, when the latter are generated by housing demand or …

wealth lies within the range commonly reported for the US and other industrialized countries. By contrast, housing market …