Tuesday, July 2, 2013

Rising house prices don’t tend to fuel greater consumption by households

Rising house prices don't tend to fuel greater consumption by households

Do house prices influence consumption patterns? The economic crisis has led to a slump in both the price of houses and in consumption, meaning that any link between the two is of great interest to policy-makers who wish to kick-start consumption in order to reinvigorate growth in Western economies. New research from Martin Browning, Mette Gørtz and Soren Leth-Peterson attempts to find the links between consumption and house prices. However, they find that any increase in house prices has no effect on consumption by the old and only a very small effect on consumption for the young.

Posted by m @ 12:04 PM (1364 views)
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One thought on “Rising house prices don’t tend to fuel greater consumption by households

  • mark wadsworth says:

    Good article, I’ve nicked it for my blog.

    Reply
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