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|Title:||Can the consumption-wealth ratio predict housing returns? Evidence from OECD countries|
|Keywords:||Consumption;Wealth;Stock returns;Housing returns;OECD countries|
|Publisher:||John Wiley & Sons|
|Citation:||Real Estate Economics, 2015|
|Abstract:||We use a representative consumer model to analyse the relation between the transitory deviations of consumption from its common trend with aggregate wealth and labour income, cay, and the housing risk premium. The evidence based on data for 15 OECD countries shows that, if financial and housing assets are seen as complements, investors will temporarily allow consumption to rise when they expect a rise in future housing returns. By contrast, if housing assets are treated as substitutes for financial assets, consumption will be reduced.|
|Appears in Collections:||Dept of Economics and Finance Research Papers|
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