Wealth Effects in Europe : : A Tale of Two Countries (Italy and the United Kingdom) / / Sònia Muñoz

• Record Nr.: UNINA9910788406503321
• Autore: Muñoz Sònia
• Pubbl/distr/stampa: Washington, D.C. : , : International Monetary Fund, , 2006
• ISBN: 1-4623-4477-1; 1-4527-4410-6; 1-283-51563-6; 1-4519-0826-1; 9786613828088
• Descrizione fisica: 1 online resource (53 p.)
• Collana: IMF Working Papers
• Soggetti: Capital market - Great Britain - Econometric models; Capital market - Italy - Econometric models; Consumption (Economics) - Great Britain - Econometric models; Consumption (Economics) - Italy - Econometric models; Wealth - Great Britain - Econometric models; Wealth - Italy - Econometric models; Finance: General; Investments: Stocks; Macroeconomics; Money and Monetary Policy; Multiple or Simultaneous Equation Models: Models with Panel Data; Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Consumer Economics: Empirical Analysis; Financial Markets and the Macroeconomy; Portfolio Choice; Investment Decisions; Macroeconomics: Consumption; Saving; Wealth; Aggregate Factor Income Distribution; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors; General Financial Markets: General (includes Measurement and Data); Price Level; Inflation; Deflation; Finance; Investment & securities; Monetary economics; Consumption; Income; Stocks; Liquidity; Capital markets; National accounts; Financial institutions; Asset and liability management; Financial markets; Asset prices; Prices; Economics; Capital market; Italy
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Note generali: "January 2006."
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: ""Contents""; ""I. Introduction""; ""II. Household Data on Wealth and Consumption""; ""III. Capital Markets in Europe and Household Portfolios""; ""IV. The Life-Cycle Model of Consumption""; ""V. The Basic Model""; ""VI. Empirical Results""; ""VII. Conclusion""; ""Appendix: Data and Constructed Variables ""; ""References""
• Sommario/riassunto: This paper investigates the increasing exposure of European households to risky financial assets and the consequent impact on the economy. I analyze household data for Italy and the United Kingdom, countries that differ dramatically in their financial structure and capital markets. I estimate an endogenous switching model with bivariate switching to overcome two important obstacles in this line of research, namely, the consumption Capital Asset Pricing Model Puzzle and the excess sensitivity puzzle. The results show that there are wealth effects in both countries. I find some evidence of liquidity constraints only in Italy and habit formation exclusively in the United Kingdom.