Why should the housing wealth effect be larger everywhere than it is for stockmarkets?
The key finding: Housing wealth does not follow a steady and expected decumulation pattern, starting at retirement.
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They may also spend more, but this extra consumption would not be caused by changes in housing wealth.
Moreover, relying on housing wealth to fuel consumption might create a property bubble.
Thus, obviously, given that housing wealth is a major part of household wealth, it will be lower in Germany than elsewhere.
While household spending has picked up recently, it remains constrained by high unemployment, modest income growth, lower housing wealth and tight credit.
Spending will be hit, too, by weak stockmarkets and shrinking housing wealth.
The FOMC notes that household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth and tight credit.
Household-saving rates may have fallen, but this does not necessarily indicate imprudence since it has occurred at a time of steep rises in housing wealth.
The Federal Reserve, for example, uses a model of the economy in which housing wealth influences consumer spending to exactly the same degree that financial wealth does.
"Household spending has shown signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth and tight credit, " said the Federal Reserve in its assessment Wednesday.
But they are unlikely to shrug off a 10% plunge within one year, particularly since America's homeowners have become used to their housing wealth rising by well over 5% a year.
The authors find an effect of housing wealth on consumer spending that is both much lower than earlier research suggests and a lot smaller than the effect of changes in equity wealth.
That is a sizeable hit, and it comes on top of the other problems facing America's economy, such as the drag on consumer spending from falling housing wealth or a weaker job market.
He set out what might happen if American house prices fell by a massive 20% in 2007-08, assuming that an extra dollar of housing wealth changed consumer spending by 3.8 cents (as in the Fed's own model).
Comparing the financial and housing wealth of different age groups in 1995 and 2005 the Bank of England found that those aged 25 to 34 had seen their wealth fall, whereas those aged 55 to 64 had seen theirs triple.
If house prices in general are moving in line with the price of a typical house, this approach gives a good guide to changes in housing wealth, which is what matters for the Bank of England as it assesses the economy.
With a housing-wealth effect twice as large (the same size as in Mr Muellbauer's study) and one and a half times as speedy, it would be 1.5% lower a little earlier.
In the short run, the danger is that the wealth effect from housing may follow the equity wealth effect by turning negative.
The survey's planners designed a 90-minute collection of several hundred questions, put face-to-face, on health, wealth, housing, employment and family status.
Factor in the loss of wealth in housing, still depreciating.
Another thing we could do is revise our tax laws, which at this point, as Marilyn just indicated, tend to incentivize people at the upper income scales to spend a lot of their wealth on housing and I think we need policies that make a tax advantage to save.
The strong housing market means that personal wealth hasn't been hit as hard as it could have been.
Housing is a sink of wealth that offers nothing to the productive economy.
Gradual reversion to the mean seems to be carrying the day: in wealth, jobs and housing as well as share prices.
Here, the conventional wisdom is that Britain has less to worry about than America, because personal wealth is concentrated in housing rather than equities.
However, non-financial wealth--most notably housing--tends to rise while annuity payments remain flat.
Where regeneration is taking place it is usually in the form or hotels and housing rather than pioneering new technologies or wealth-creating manufacturing businesses.
In fact, the United States is so far beyond that point that way too much of our national wealth is tied up in housing.
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