Please use this identifier to cite or link to this item: http://buratest.brunel.ac.uk/handle/2438/6124
Title: Are stock and housing returns complements or substitutes? Evidence from OECD countries
Authors: Caporale, GM
Sousa, RM
Keywords: Consumption;Wealth;Stock returns;Housing returns;OECD countries
Issue Date: 2011
Publisher: Brunel University
Citation: Economics and Finance Working Paper, 11-15, Oct 2011
Abstract: In this paper we use a representative consumer model to analyse the equilibrium relation between the transitory deviations from the common trend among consumption, aggregate wealth, and labour income, cay, and focus on the implications for both stock returns and housing returns. The evidence based on data for 15 OECD countries shows that when agents expect future stock returns to be higher, they will temporarily allow consumption to rise. Regarding housing returns, if housing assets are seen as complements to stocks, then investors react in the same way, but if they are instead treated as substitutes consumption will be temporarily reduced.
Description: Copyright @ 2011 Brunel University
URI: http://bura.brunel.ac.uk/handle/2438/6124
Appears in Collections:Economics and Finance
Publications
Dept of Economics and Finance Research Papers

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