The impact of unanticipated wealth effects on consumption: evidence from Spanish panel data
Purpose – The purpose of this study is to estimate the housing wealth effect on non-durable consumption using data from the Spanish Survey of Household Finances (Encuesta Financiera de las Familias, SHF) for the period 2002–2017. Design/methodology/approach – The authors aim at identifying the effec...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2023-11-01
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| Series: | Applied Economic Analysis |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/AEA-03-2023-0085/full/pdf |
| _version_ | 1797633779969294336 |
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| author | Antonio Cutanda Juan Alberto Sanchis Llopis |
| author_facet | Antonio Cutanda Juan Alberto Sanchis Llopis |
| author_sort | Antonio Cutanda |
| collection | DOAJ |
| description | Purpose – The purpose of this study is to estimate the housing wealth effect on non-durable consumption using data from the Spanish Survey of Household Finances (Encuesta Financiera de las Familias, SHF) for the period 2002–2017. Design/methodology/approach – The authors aim at identifying the effect of anticipated and unanticipated housing wealth changes on consumption with the sample of homeowners, following Paiella and Pistaferri (2017). Findings – Results of this study lead us to conclude that there exists a strong housing wealth effect on consumption for the Spanish households. Originality/value – The authors provide evidence against the permanent income model. They also analyse how the results change with income expectations, age and the household indebtedness rate. Finally, they detect a strong excess sensitivity to income. |
| first_indexed | 2024-03-11T11:58:24Z |
| format | Article |
| id | doaj.art-121d04709e0f41b2a3a64695c161a8b4 |
| institution | Directory Open Access Journal |
| issn | 2632-7627 |
| language | English |
| last_indexed | 2024-03-11T11:58:24Z |
| publishDate | 2023-11-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Applied Economic Analysis |
| spelling | doaj.art-121d04709e0f41b2a3a64695c161a8b42023-11-08T10:13:25ZengEmerald PublishingApplied Economic Analysis2632-76272023-11-01319316218110.1108/AEA-03-2023-0085The impact of unanticipated wealth effects on consumption: evidence from Spanish panel dataAntonio Cutanda0Juan Alberto Sanchis Llopis1Department of Analisis Economico, Universitat de València, Valencia, SpainDepartment of Estructura Económica, Universitat de València, Valencia, SpainPurpose – The purpose of this study is to estimate the housing wealth effect on non-durable consumption using data from the Spanish Survey of Household Finances (Encuesta Financiera de las Familias, SHF) for the period 2002–2017. Design/methodology/approach – The authors aim at identifying the effect of anticipated and unanticipated housing wealth changes on consumption with the sample of homeowners, following Paiella and Pistaferri (2017). Findings – Results of this study lead us to conclude that there exists a strong housing wealth effect on consumption for the Spanish households. Originality/value – The authors provide evidence against the permanent income model. They also analyse how the results change with income expectations, age and the household indebtedness rate. Finally, they detect a strong excess sensitivity to income.https://www.emerald.com/insight/content/doi/10.1108/AEA-03-2023-0085/full/pdfWealth effect on consumptionSubjective expectationsInstrumental variablesPanel data |
| spellingShingle | Antonio Cutanda Juan Alberto Sanchis Llopis The impact of unanticipated wealth effects on consumption: evidence from Spanish panel data Applied Economic Analysis Wealth effect on consumption Subjective expectations Instrumental variables Panel data |
| title | The impact of unanticipated wealth effects on consumption: evidence from Spanish panel data |
| title_full | The impact of unanticipated wealth effects on consumption: evidence from Spanish panel data |
| title_fullStr | The impact of unanticipated wealth effects on consumption: evidence from Spanish panel data |
| title_full_unstemmed | The impact of unanticipated wealth effects on consumption: evidence from Spanish panel data |
| title_short | The impact of unanticipated wealth effects on consumption: evidence from Spanish panel data |
| title_sort | impact of unanticipated wealth effects on consumption evidence from spanish panel data |
| topic | Wealth effect on consumption Subjective expectations Instrumental variables Panel data |
| url | https://www.emerald.com/insight/content/doi/10.1108/AEA-03-2023-0085/full/pdf |
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