The DOI matches its Crossref record; 60 of the 60 references it cites were found in a registry or an index.
House Prices and Consumer Spending
Abstract
Recent empirical work shows large consumption responses to house price movements. This is at odds with a prominent theoretical view which, using the logic of the permanent income hypothesis, argues that consumption responses should be small. We show that, in contrast to this view, workhorse models of consumption with incomplete markets calibrated to rich cross-sectional micro facts actually predict large consumption responses, in line with the data. To explain this result, we show that consumption responses to permanent house price shocks can be approximated by a simple and robust rule-of-thumb formula: the marginal propensity to consume out of temporary income times the value of housing. In our model, consumption responses depend on a number of factors such as the level and distribution of debt, the size and history of house price shocks, and the level of credit supply. Each of these effects is naturally explained with our simple formula.
Overview
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Citations
Cites
The Geographic Determinants of Housing Supply *
Saiz, A. (2010) · Quarterly Journal of Economics · doi:10.1162/qjec.2010.125.3.1253 · Cited by 1,793
Household Balance Sheets, Consumption, and the Economic Slump*
Mian, A., Rao, K., & Sufi, A. (2013) · The Quarterly Journal of Economics · doi:10.1093/qje/qjt020 · Cited by 1,538
Debt, Deleveraging, and the Liquidity Trap: A Fisher-Minsky-Koo Approach*
Eggertsson, G. B., & Krugman, P. (2012) · The Quarterly Journal of Economics · doi:10.1093/qje/qjs023 · Cited by 1,406
How do house prices affect consumption? Evidence from micro data
Campbell, J. Y., & Cocco, J. F. (2007) · Journal of Monetary Economics · doi:10.1016/j.jmoneco.2005.10.016 · Cited by 1,064
Portfolio Choice in the Presence of Housing
Cocco, J. F. (2005) · Review of Financial Studies · doi:10.1093/rfs/hhi006 · Cited by 998
Consumption Inequality and Partial Insurance
Blundell, R., Pistaferri, L., & Preston, I. (2008) · American Economic Review · doi:10.1257/aer.98.5.1887 · Cited by 980
A Model of the Consumption Response to Fiscal Stimulus Payments
(2014) · Econometrica · doi:10.3982/ecta10528 · Cited by 966
Household Expenditure and the Income Tax Rebates of 2001
Johnson, D. S., Parker, J. A., & Souleles, N. S. (2006) · American Economic Review · doi:10.1257/aer.96.5.1589 · Cited by 936
Consumption inequality and partial insurance
Blundell, R., Pistaferri, L., & Preston, I. (2004) · Working Paper Series · doi:10.1920/wp.ifs.2004.0428 · Cited by 846
Monetary Policy and the Redistribution Channel
Auclert, A. (2019) · American Economic Review · doi:10.1257/aer.20160137 · Cited by 773
Cited by
Consumer Spending during Unemployment: Positive and Normative Implications
Ganong, P., & Noel, P. (2019) · American Economic Review · doi:10.1257/aer.20170537 · Cited by 433
Identification in Macroeconomics
Nakamura, E., & Steinsson, J. (2018) · Journal of Economic Perspectives · doi:10.1257/jep.32.3.59 · Cited by 419
Bank-Branch Supply, Financial Inclusion, and Wealth Accumulation
Célerier, C., & Matray, A. (2019) · The Review of Financial Studies · doi:10.1093/rfs/hhz046 · Cited by 283
Ganong, P., & Noel, P. (2020) · American Economic Review · doi:10.1257/aer.20181243 · Cited by 201
Identifying the Benefits from Homeownership: A Swedish Experiment
Sodini, P., Van Nieuwerburgh, S., Vestman, R., & von Lilienfeld-Toal, U. (2016) · doi:10.3386/w22882 · Cited by 58
Metadata
- Authors
- Berger, D., Guerrieri, V., Lorenzoni, G., & Vavra, J.
- Venue
- The Review of Economic Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 2017-10-06
- Volume
- 85
- Issue
- 3
- Pages
- 1502-1542
- ISSN
- 0034-6527 (ISSN-L)
- 1467-937X
- OpenAlex
- W2120631113
- Cited by
- 364
- References
- 60
- FWCI
- 57.13
- Type
- journal article
- Language
- en
- Open access
- closed
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
How to cite
Cite CoChat for the checks on this page, and the paper for its own findings.
- This page
- CoChat. (2026). Citation check: House Prices and Consumer Spending. https://app.cochat.ai/papers/10.1093/restud/rdx060
- The paper
- Berger, D., Guerrieri, V., Lorenzoni, G., & Vavra, J. (2018). House Prices and Consumer Spending. The Review of Economic Studies. https://doi.org/10.1093/restud/rdx060
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
