Please use this identifier to cite or link to this item: http://hdl.handle.net/1822/14587

TitleAre stock and housing returns complements or substitutes? Evidence from OECD countries
Author(s)Caporale, Guglielmo Maria
Sousa, Ricardo M.
KeywordsConsumption
Wealth
Stock returns
Housing returns
OECD countries
Issue date2011
PublisherUniversidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
Abstract(s)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.
TypeWorking paper
URIhttp://hdl.handle.net/1822/14587
Publisher versionhttp://www.eeg.uminho.pt/economia/nipe
Peer-Reviewedno
AccessOpen access
Appears in Collections:NIPE - Documentos de Trabalho

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