IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2001_260.html
   My bibliography  Save this paper

Housing Market Gains and Consumer Spending

Author

Listed:
  • John Quigley

Abstract

"Worries about ""irrational exuberance"" in stock prices have renewed interest in the linkage between measures of wealth and consumer spending. In particular, unrealized capital gains in the stock market and also in the housing market may have substantially affected consumer spending, amplifying the recent expansion and perhaps increasing the danger of recession. The paper combines an analysis of U.S. states with one focussing on the international experience during the past three decades. It estimates the effect of housing wealth and stock market inflation of asset prices upon consumer spending for US states and for EU countries. We estimate simple models of consumption behavior adding measures of the unrealized capital gains in housing. The results for both the U.S. and for Europe indicate a strong relationship between capital gains in housing and consumer spending. If anything, the results are stronger for housing wealth than for stock market wealth."

Suggested Citation

  • John Quigley, 2001. "Housing Market Gains and Consumer Spending," ERES eres2001_260, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2001_260
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2001-260
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arz:wpaper:eres2001_260. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/eressea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.