Stock Market Returns and Consumption

• 成果类型: Article
• 署名作者: Di Maggio, Marco; Kermani, Amir; Majlesi, Kaveh
• 署名单位: Harvard University; National Bureau of Economic Research; University of California System; University of California Berkeley; Lund University; Monash University; Centre for Economic Policy Research - UK; Research Institute of Industrial Economics (IFN); IZA Institute Labor Economics
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12968
• 发表日期: 2020
• 页码: 3175-3219
• 关键词: house prices; financial wealth; Home equity; income; INVESTMENT; POLICY; debt

摘要

This paper employs Swedish data on households' stock holdings to investigate how consumption responds to changes in stock market returns. We instrument the actual capital gains and dividend payments with past portfolio weights. Unrealized capital gains lead to a marginal propensity to consume of 23% for the bottom 50% of the wealth distribution and about 3% for the top 30% of the wealth distribution. Household consumption is significantly more responsive to dividend payouts across all parts of the wealth distribution. Our findings are consistent with households treating capital gains and dividends as separate sources of income.