Wealth effects in Europe : a tale of two countries (Italy and the United Kingdom) /

Wealth effects in Europe : a tale of two countries (Italy and the United Kingdom) /

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Bibliographic Details
Author / Creator:	Muñoz, Sònia, 1970- author.
Imprint:	Washington, D.C. : International Monetary Fund, African Dept., ©2006.
Description:	1 online resource (51 pages) : illustrations.
Language:	English
Series:	IMF working paper ; WP/06/30 IMF working paper ; WP/06/30.
Subject:	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. Capital market -- Econometric models. Consumption (Economics) -- Econometric models. Wealth -- Econometric models. Great Britain. Italy.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/13510743

Hidden Bibliographic Details
Other authors / contributors:	International Monetary Fund. African Department.
ISBN:	1283515636 9781283515634
Notes:	Includes bibliographical references. Print version record.
Summary:	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.

Description
Summary:	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.
Physical Description:	1 online resource (51 pages) : illustrations.
Bibliography:	Includes bibliographical references.
ISBN:	1283515636 9781283515634