Seminar

Seminar: House Price Shocks and Household Saving

Dinsdag 14 mei 2019 geeft Eduard Suari-Andreu (Leiden University) een presentatie getiteld: 'House Price Shocks and Household Saving'

Datum
14 mei 2019
Tijd
13:00 - 14:00
Locatie
CPB-kantoor, Bezuidenhoutseweg 30, Den Haag (Vergaderzaal 3 - Braamzaal)
Presentatie
Eduard Suari-Andreu (Leiden University)
Discussant
Lu Zhang (CPB)
Voertaal
English

The aim of this study is to investigate what is the effect of unexpected house price shocks on the saving and consumption behavior of households. The macroeconomic literature has identified a robust relationship between house prices and consumption at the aggregate level. The microeconomic literature argues that this might be due to three possible main reasons: a wealth effect whereby households compensate changes in housing wealth by spending/saving more, a collateral effect whereby households use the main residence as a collateral for consumer loans, and a common causality effect whereby a third aggregate variable correlates with both house prices and consumption. Using data from Dutch National Bank Household Survey, I test the implications of these three possible explanations employing subjective house prices and subjective house price expectations. Preliminary results rule out a strong wealth effect, implying that it is a collateral effect and/or a third aggregate variable that explains the macroeconomic relationship between house prices and consumption.

Contactpersonen

Jannie Droog +31 6 21856579 Lees verder