RBA paper finds distribution matters when assessing impact of wealth effects
Low-income households appear to respond more strongly to wealth effects
Researchers at the Reserve Bank of Australia (RBA) have found more evidence in favour of taking a nuanced view of consumers, finding income matters for the pass-through of wealth effects.
In a research discussion paper published today (August 24), RBA economists Christian Gillitzer and Jin Cong Wang examine how Australian consumers purchase cars in response to a change in the value of their house. They compare the postcode-level changes in house prices to the number of new cars registered in
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