Title | Wealth shocks, unemployment shocks and consumption in the wake of the Great Recession |
Publication Type | Journal Article |
Year of Publication | 2015 |
Authors | Christelis, D, Georgarakos, D, Jappelli, T |
Journal | Journal of Monetary Economics |
Volume | 72 |
Pagination | 21-41 |
Keywords | Consumption and Savings, Employment and Labor Force, Net Worth and Assets, Public Policy |
Abstract | Data from the 2009 Internet Survey of the Health and Retirement Study show that many US households experienced large capital losses in housing and financial wealth, and that 5 of respondents lost their job during the Great Recession. For every loss of 10 in housing and financial wealth, the estimated drop in household expenditure was about 0.56 and 0.9 , respectively. Those who became unemployed reduced spending by 10 . In line with predictions of standard inter-temporal choice models, households who perceived the stock market shock to be permanent adjusted spending much more than those who perceived the shock to be temporary. |
URL | http://www.sciencedirect.com/science/article/pii/S0304393215000069 |
DOI | 10.1016/j.jmoneco.2015.01.003 |
Endnote Keywords | Wealth shocks/Unemployment/Consumption/Great Recession |
Endnote ID | 999999 |
Citation Key | 8185 |