Consumption Responses to Permanent and Transitory Shocks to House Appreciation 1

  title={Consumption Responses to Permanent and Transitory Shocks to House Appreciation 1},
  author={Juan Contreras},
We estimate the marginal propensity to consume (MPC) out of permanent and transitory shocks to house price appreciation. Besides borrowing constraints, we consider two different models under which those shocks may affect consumption. In the first one, we treat housing as a risky asset. In the second one, housing has a role as a consumption and as an investment good. In both, changes in the rate of house price appreciation may affect nonhousing consumption. Shocks to appreciation rates may… CONTINUE READING


Publications referenced by this paper.
Showing 1-10 of 33 references

House Price Changes and Idiosyncratic Risk: The Impact of Property Characteristics.

Bourassa, Steven, +3 authors Jian Sun
Real Estate Economics • 2009
View 4 Excerpts
Highly Influenced

Leicester.“Booms and Busts: Consumption, House Prices, and Expectations.

Attanasio, Orazio, Laura Blow, Robert Hamilton, Andrew
Economica 76(301), • 2009
View 6 Excerpts
Highly Influenced

Housing Wealth Isn ’ t Wealth

Willem H. Buiter
View 1 Excerpt

The ( Mythical ? ) Housing Wealth Effect

Charles Calomiris, Stanley D. Longhofer, William Miles NBER
View 3 Excerpts

How Do House Prices Affect Consumption? Evidence From Micro Data.

Campbell, Y John, João F. Cocco
Journal of Monetary Economics • 2007
View 3 Excerpts

Similar Papers

Loading similar papers…