Italian Household Wealth in a Cross-Country Perspective

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

doi:10.2139/ssrn.1162095

Cited by 7 publications

(4 citation statements)

References 24 publications

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“…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%

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The effects of financial and real wealth on consumption: new evidence from OECD countries

Bonis

Silvestrini

2011

Applied Financial Economics

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185

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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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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

Applied Financial Economics

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185

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“…The Italian housing wealth to disposable income ratio has been increasing from 3.95 in 1995 to 5.38 in 2008, seeBartiloro et al (2008). The average target of 4.0 has been calculated by subtracting housing structures from total housing wealth.…”

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Household Spending Out of a Tax Rebate: Italian '€80 Tax Bonus'

2017

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We estimate the consumption response of Italian households to the "€80 tax bonus" introduced in 2014, using the panel component on the Survey of Household Income and Wealth. We find that households that received the tax rebate increased their monthly consumption of food and means of transportation by about €20 and €30, respectively, about 50-60 per cent of the total bonus. There was a larger increase for households with low liquid wealth or low income. Our estimates are quite robust to different model specifications and are broadly in line with the evidence available from similar tax rebates in other countries but, due to the small sample size, are not always statistically significant. To understand the mechanism behind our results we then simulate an overlapping generations model of household consumption: the marginal propensity to consume generated by the structural model is in line with our empirical estimates.

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Causes and Welfare Consequences of Real Estate Price Appreciation

Scoccianti

2010

Housing Markets in Europe

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Italian Household Wealth in a Cross-Country Perspective

Cited by 7 publications

References 24 publications

The effects of financial and real wealth on consumption: new evidence from OECD countries

The effects of financial and real wealth on consumption: new evidence from OECD countries

Household Spending Out of a Tax Rebate: Italian '€80 Tax Bonus'

Causes and Welfare Consequences of Real Estate Price Appreciation

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