| The Journal of Real Estate Finance and Economics | |
| Volume 29, Issue 3, Article 5 (Abstract) | |
| Title: | The Effects of Attributes on the Repeat Sales Pattern of Residential Property in Hong Kong |
| Author: | Real Estate Versus Financial Wealth in Consumption |
| Abstract: | The consumption function for the U.S. economy is estimated with real estate and financial wealth for quarterly data for 1952:1-2001:4. An additional dollar of real estate wealth increases consumption by 8 cents in the current year, as compared with only 2 cents for financial wealth. The results are consistent with theoretical bounds on the marginal propensity to consume from aggregate wealth. The decline in the stock market during 2000-2001 had a limited impact on aggregate demand in part because of an offsetting real estate wealth effect. |
| Keywords: | consumption and savings, marginal propensity to consume, financial assets, real estate assets |