Brief Summaries of Some Papers on Housing Wealth Effects
January, 2004

These summaries were written by Sherif Khalifa (Ph.D., Johns Hopkins University, 2006) in his capacity as a research assistant for Chris Carroll during the preparation of the paper Housing Wealth and Consumption Expenditure presented before the Board of Governors of the Federal Reserve in January 2004. No attempt is made at completeness - some prominent papers have been omitted because they were so familiar as to not need summarizing.
  • Alessandri, Piergiorgio. "Aggregate Consumption and the Stock Market: A New Assessment of the Equity Wealth Effect." Mimeo, University of London, 2003. Summary
  • Arnold, Ivo, Van Els, Peter, and Jakob de Haan. "Wealth Effects and Monetary Policy." De Nederlandsche Bank Research Memorandum 719, 2002. Summary
  • Barata, José Martins, Pacheco, Luís Miguel. "Asset Prices and Monetary Policy: Wealth Effects on Consumption." Paper for the 20th Symposium on Banking and Monetary Economics, University of Birmingham, 2003. Paper Summary
  • Benjamin, John D., Chinloy, Peter, and G. Donald Jud. "Consumption, Real Estate and Financial Wealth." Mimeo, University of North Carolina, 2003. Paper Summary
  • Bertaut, Carol C. "Equity Prices, Household Wealth, and Consumption Growth in Foreign Industrial Countries: Wealth Effects in the 1990s." International Finance Discussion Papers 724, Board of Governors of the Federal Reserve System, 2002. Paper Summary
  • Boone, Laurence, Giorno, Claude, and Pete Richardson. "Stock Market Fluctuations and Consumption Behavior: Some Recent Evidence." OECD Economics Department Working Paper 208, 1998. Paper Summary
  • Byrne, Joseph, Davis, Phillip. "Disaggregate Wealth and Aggregate Consumption: An Investigation of Empirical Relationships for the G7." Mimeo, Brunel University-West London, 2001. Paper Summary
  • Case, Karl E.; Quigley, John M.; Shiller, Robert J. "Comparing Wealth Effects: The Stock Market Versus the Housing Market." NBER Working Paper 8606, 2001. Paper Summary
  • Case, Karl E., Quigley, John M., and Robert Shiller. “Home-buyers, Housing and the Macroeconomy.” Reserve Bank of Australia Conference on Asset Prices and Monetary Policy, 2003. Paper Summary
  • Davis, Morris A., Palumbo, Michael G. "A Primer on the Economics and Time Series Econometrics of Wealth Effects." Federal Reserve Board, Washington D.C., 2001. Paper Summary
  • Disney, Richard, Henley, Andrew, and David Jevons. "House Price Shocks, Negative Equity and Household Consumption in the UK in the 1990s." Mimeo, 2002. Paper Summary
  • Dvornak, Nikola, Kohler, Marion. "Housing Wealth, Stock Market Wealth and Consumption: A Panel Analysis for Australia." Research Discussion Paper 23, Reserve Bank of Australia, 2003. Paper Summary
  • Dynan, Karen E., Maki, Dean M. "Does Stock Market Wealth Matter for Consumption?" Board of Governors of the Federal Reserve System, Finance and Economics Discussion Papers 23, 2001. Paper Summary
  • Edison, Hali, Sløk, Torsten. "Wealth Effects and the New Economy." IMF Working Paper 01/77, 2001. Paper Summary
  • Engelhardt, Gary V. "House Prices and Home Owner Saving Behavior." Regional Science and Urban Economics, 1996, 26:313-336. Paper Summary
  • Englund, Peter, Ioannides, Yannis. "House Price Dynamics: An International Empirical Perspective." Journal of Housing Economics, 1997, 6:119-136. Summary
  • Girouard, Nathalie, Blöndal, Sveinbjörn. "House Prices and Economic Activity." OECD Economic Department Working Paper 279, 2001. Paper Summary
  • Green, Richard K. "Stock prices and house prices in California: new evidence of a wealth effect?." Regional Science and Urban Economics, 2002, 32: 775–783 Paper Summary
  • Hoynes, Hilary W., McFadden, D. "The Impact of Demographics on Housing and Nonhousing Wealth in the United States." NBER Working Paper 4666, 1994. Paper Summary
  • Jud, G. Donald, Winkler, Daniel T. "The Dynamics of Metropolitan Housing Prices." Journal of Real Estate Research, 2002, 23: 29-45. Paper Summary
  • Juster, F. Thomas; Lupton, Joseph; Smith, James P.; and Frank Stafford. “The Decline in Household Saving and Wealth Effect.” Mimeo, University of Michigan, 2001. Summary
  • Labonte, Marc :U.S. Housing Prices: Is there a Bubble?" Congressional Research Service, 2003. Paper Summary
  • Lettau, Martin, Ludvigson, Sydney, and Nathan Barczi. "A Primer on the Economics and Time Series Econometrics of Wealth Effects: A Comment." Federal Reserve Bank of New York, 2001. Paper Summary
  • Lettau, Martin, Ludvigson, Sydney. "Understanding Trend and Cycle in Asset Values: Reevaluating the Wealth Effect on Consumption." NBER Working Paper 9848, 2003. Paper Summary
  • Levin, Laurence. "Are Assets Fungible? Testing the Behavioral Theory of Life Cycle Savings." Journal of Economic Behavior and Organization, 1998, 36:59-83. Paper Summary
  • Ludvigson, Sydney, Steindel, Charles. "How Important is the Stock Market Effect on Consumption?" Federal Reserve Bank of New York Economic Policy Review, 1999. Paper Summary
  • Ludwig, Alexander, Sløk, Torsten. "The Impact of Changes in Stock Prices and House Prices on Consumption in OECD Countries." IMF Working Paper 02/01, 2002. Paper Summary
  • Macklem, R. Tiff. "Wealth, Disposable Income and Consumption: Some Evidence for Canada." Bank of Canada, 1994. Paper Summary
  • Maki, Dean M., Palumbo, Michael M. "Disentangling the Wealth Effect: A Cohort Analysis of Household Saving in the 1990s." Federal Reserve Board, 2001. Paper Summary
  • Mehra, Yash. "The Wealth Effect in Empirical Life Cycle Aggregate Consumption Equations." Federal Reserve Bank of Richmond Economic Quarterly, 87/2, 2001. Paper Summary
  • Peek, Joe. “Capital Gains and Personal Saving Behavior.” Journal of Money, Credit, and Banking, 1983, 15:1-23. Paper Summary
  • Pichette, Lise, Tremblay, Dominique. "Are Wealth Effects Important for Canada?" Bank of Canada Working Paper 30, 2003. Paper Summary
  • Ploner, Matteo. “The Financial Markets and Wealth Effects on Consumption: An Experimental Analysis” Universita Degli Di Trento Discussion Paper 6, 2003. Paper Summary
  • Poterba, James M., Samwick, Andrew A. "Stock Ownership Patterns, Stock Market Fluctuations, and Consumption." Brookings Paper on Economic Activity, 1995, 2: 295-372. Paper Summary
  • Poterba, James M. "Stock Market Wealth and Consumption." Journal of Economic Perspectives, 2000, 14:99-118. Paper Summary
  • Shirvani, Hassan, Wilbratte, Barry. "Does Consumption Respond More Strongly to Stock Market Declines than to Increases?" International Economic Journal, 2000, 14: 41-49. Summary
  • Sousa, Ricardo. "Property of Stocks and Wealth Effects on Consumption." Mimeo, University of Minho, Portugal, 2003. Paper Summary
  • Starr-McCluer Martha. "Stock Market Wealth and Consumer Spending." Federal Reserve Board of Governors, 1998. Paper Summary
  • Stock, James H., Watson, Mark W. "Forecasting Output and Inflation: The Role of Asset Prices." Journal of Economic Literature, 2003. Paper Summary
  • Tuttle, M. H., Gauger, Jean. "Wealth Effects and Consumption: A Multivariate Evaluation." Mimeo, 2003. Paper Summary