Italian Household Wealth in a Cross-Country Perspective

Bartiloro, Laura; Coletta, Massimo; Bonis, Riccardo De

doi:10.2139/ssrn.2116398

Cited by 2 publications

(5 citation statements)

References 21 publications

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“…What makes the Italian economy of particular interest is that Italy shares with the United Kingdom the highest ratio of housing wealth to total disposable income, with a value of about 8 (Bartiloro et al 2008). Muellbauer's (2007) general observation that housing is the most important component of household wealth for OECD countries is then particularly true for Italian households (see also Bertola and Hochguertel 2008).…”

Section: Introductionmentioning

confidence: 99%

The Effect of House Prices on Household Consumption in Italy

Calcagno¹,

Fornero

Rossi

2009

J Real Estate Finan Econ

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This paper studies the effect of a change in real estate wealth on the consumption behaviour of Italian households, using the Bank of Italy's Survey of Household Income and Wealth dataset. We relate annual household consumption to capital gains in housing, controlling for characteristics such as age. In line with the empirical predictions of our model, we find the oldest households-which are less affected by the higher costs of future rent-to be the most affected by increases in real net housing wealth. Younger households, on the other hand, are not significantly affected in their consumption decisions by house price increases. We also take into account the fact that benefiting from capital gains is conditional on owning housing wealth and estimate the different impacts of house price changes on the savings behaviours of both homeowners and renters. Our estimates suggest that house price increases raise consumption not only for homeowners but also for renters.

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Section: Introductionmentioning

confidence: 99%

The Effect of House Prices on Household Consumption in Italy

Calcagno¹,

Fornero

Rossi

2009

J Real Estate Finan Econ

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show abstract

“…Hereafter, we consider the pooled mean group and mean group estimators, within an autoregressive distributed lag framework. The model is (2), in ARDL form as in (3), and re-parameterized introducing an error correction mechanism as in (4), is the starting point to perform mean group and pooled mean group estimation. For each country, the lag order of the ARDL model is chosen by applying the Schwarz Bayesian information criterion.…”

Section: Benchmark Results: Pooled Mean Group and Mean Group Estimatorsmentioning

confidence: 99%

“…Both estimators have been proposed in the large T, large N panels framework, whenever non-stationarity becomes an issue that can not be neglected. We rely on equation (4), starting from the ratio specification in (2).…”

Section: The Econometric Specificationmentioning

confidence: 99%

“…be the long-run coefficients associated to W (1) i and W (2) i . In this case, the long-run homogeneity assumption holds only for one of the two subsets of the long-run parameters, for instance θ θ θ…”

Section: The Econometric Specificationmentioning

confidence: 99%

“…The first estimates we present are static fixed effects based on the ratio specification in (2). Results are given in Table A3.…”

Section: Preliminary Evidence Based On Static Pooled Estimationmentioning

confidence: 99%

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The Effects of Financial and Real Wealth on Consumption: New Evidence from OECD Countries

Bonis

Silvestrini

2011

SSRN Journal

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In this paper we present new estimates of the effect of household financial and real wealth on consumption. The analysis refers to eleven OECD countries and takes into account the years from 1997 to 2008. Unlike most of the previous literature, we exploit European quarterly harmonized data on household financial assets and liabilities, which have been taken from the flow of funds. We measure not only the effect of total financial wealth on consumption, but we also consider the impact of a subset of those financial assets (i.e., quoted shares, mutual funds, insurance technical reserves) that are more linked to the Stock Exchange. Furthermore, we implement a recent econometric approach that allows for more flexible assumptions in the non-stationary panel framework under consideration. Our main results show that both net financial and real wealth have a positive effect on consumption. Overall, the influence of net financial assets is stronger than that of real assets. Using quoted shares, mutual funds and insurance technical reserves as a measure of financial wealth, we obtain a lower estimate of the marginal propensity to consume, possibly due to the strong concentration of equity instruments in the richest households.

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Italian Household Wealth in a Cross-Country Perspective

Cited by 2 publications

References 21 publications

The Effect of House Prices on Household Consumption in Italy

The Effect of House Prices on Household Consumption in Italy

The Effects of Financial and Real Wealth on Consumption: New Evidence from OECD Countries

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