How Do House Prices Affect Consumption Patterns Across Categories?
- 주제(키워드) 도움말 House Price , Consumption Category , Wealth Effect , Role of Debt
- 발행기관 KOREAN ECONOMIC ASSOCIATION
- 발행년도 2021
- 총서유형 Journal
- 본문언어 영어
초록/요약 도움말
This study examines the extent to which house prices may affect consumption patterns across categories. For this purpose, we merge house price data with transaction data between 2012 and 2016, provided by a major credit card company in South Korea. We find a positive relationship between house prices and overall consumption, but great heterogeneity across consumption categories. Results imply that the change in house price accounts for 25% of the change in total consumption. Moreover, such effects of house price change quantitatively vary by consumption categories, from 0.15% to 46.08%.
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