Wealth effects in Italian consumption
A recent European Central Bank working paper found that homeowners' consumption in Italy reacts statistically and economically significantly to realised housing wealth gains.
The authors estimate the marginal propensity to consume estimated at over 8%. This result is slightly higher than in similar studies for the United States, but in line with studies analysing United Kingdom and Japan.
Additionally, the estimated elasticity is larger for "old" households and smaller for "young" households
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