House Prices and Aggregate Consumption: Do they Move Together? Evidence from Singapore

• Main Author: PHANG, Sock Yong
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2004
• Subjects: housing prices; consumption; life-cycle/permanent income hypotheses; Singapore; Asian Studies; Public Economics; Real Estate
• Online Access: https://ink.library.smu.edu.sg/soe_research/448; https://doi.org/10.1016/j.jhe.2004.04.003
• Institution: Singapore Management University

Using data from Singapore, we find no evidence that house price increases have produced either wealth or collateral enhancement effects on aggregate consumption. We confirm the presence of liquidity constraints from the asymmetric reaction of consumption to income increases vis-a-vis income declines...