Wealth effect in the US: evidence from the combination of two surveys

Salotti, Simone (2012): Wealth effect in the US: evidence from the combination of two surveys. Published in: The Economic and Social Review , Vol. 1, No. 43 (2012): pp. 67-98.

Abstract

In this article we investigate the role of wealth in household consumption during the period 1989-2007 using a household-level cross sectional dataset. We combine information from the Consumer Expenditure Survey and the Survey of Consumer Finances to build a detailed dataset for the US for this. We adopt a sample combination procedure which differs considerably from that used earlier by other researchers. When comparing our results with previous research, we find a higher elasticity of consumption with respect to income and a lower elasticity of consumption with respect to both housing wealth and, particularly, to financial wealth.

• Item Type: MPRA Paper
• Language: English
• Keywords: Consumption, Household Wealth, Wealth Effect, Sample combination.
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E21 - Consumption ; Saving ; Wealth

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