Downloads
![Image representing the file: wp201321.pdf](/sites/default/files/output_url_files/wp201321.pdf_0.jpg)
wp201321.pdf
PDF | 514.56 KB
We estimate marginal propensities to consume from wealth shocks for Italian households. Large asset price shocks in 2008 underpin an IV estimator. A euro fall in financial or risky financial wealth resulted in cuts in annual total (non-durable) consumption of 5-9 (3.5-6) cents. There is evidence of effects for food spending. Responses of total and non-durable spending to changes in housing wealth are 0.2 to 0.4 cents/euro. Counterfactuals indicate financial wealth effects were important (relative to other factors) for consumption falls in 2008/09. Thus wealth effects on consumption can be important for households' welfare and aggregate outcomes.
Authors
![Matthew Wakefield](/sites/default/files/styles/square_desktop/public/2022-08/Wakefield_cropped.jpg?itok=syMVUpoD)
Research Associate University of Bologna
Matthew is Associate Professor at the University of Bologna focusing on consumption and savings choices and how policy affects them.
Research Associate University of Bologna
Renata is an Associate Professor at the University of Bologna and IFS Research Associate, working on household consumption, saving and labour supply.
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Serena Trucchi
Working Paper details
- DOI
- 10.1920/wp.ifs.2013.1321
- Publisher
- Institute for Fiscal Studies
Suggested citation
R, Bottazzi and S, Trucchi and M, Wakefield. (2013). Wealth effects and the consumption of Italian households in the Great Recession. London: Institute for Fiscal Studies. Available at: https://ifs.org.uk/publications/wealth-effects-and-consumption-italian-households-great-recession-0 (accessed: 30 June 2024).
More from IFS
Understand this issue
![Female surgeon](/sites/default/files/styles/square_desktop/public/2024-04/female-surgeon-2.jpg?itok=DxoZaqMs)
If you can’t see it, you can’t be it: role models influence female junior doctors’ choice of medical specialty
24 April 2024
![Woman working at her desk](/sites/default/files/styles/square_desktop/public/2023-11/Older-worker-at-desk-2_0.jpg?itok=FK1zrjeB)
Retirement is not always a choice that workers can afford to make
6 November 2023
![child attending class via video call](/sites/default/files/styles/square_desktop/public/2023-07/Child-attending-class-via-video-call.jpg?itok=5JsXb5eq)
How did parents’ experiences in the labour market shape children’s social and emotional development during the pandemic?
1 August 2023
Policy analysis
![Foreign Office sign](/sites/default/files/styles/square_desktop/public/2024-01/FCDO.jpg?itok=tF9rqG36)
Three ways to improve the design of the UK’s overseas aid spending target
18 January 2024
![Ghana cedi bank notes](/sites/default/files/styles/square_desktop/public/2023-11/Ghana-cedi-notes.jpg?itok=QoCRtxWQ)
Distributional analysis of Ghana’s tax system
18 December 2023
![Shopping street](/sites/default/files/styles/square_desktop/public/2024-06/Street-scene-.jpg?itok=R39cR6Xp)
How do the last five years measure up on levelling up?
19 June 2024
Academic research
![Working Paper Cover](/sites/default/files/styles/portrait/public/2024-05/WP202423-Targeting-men-women-or-both-to-reduce-child-marriage_Page_01.jpg?itok=llhHsGnn)
Targeting men, women or both to reduce child marriage
28 May 2024
![Working Paper Cover](/sites/default/files/styles/portrait/public/2024-05/WP202422-Keeping-the-peace-while-getting-your-way-information-persuasion-and-intimate-partner-violence_Page_01.jpg?itok=JR-kAVHv)
Keeping the peace whilst getting your way: Information, persuasion and intimate partner violence
17 May 2024
![Working Paper Cover](/sites/default/files/styles/portrait/public/2024-05/WP202419-Forced-displacement-mental-health-and-child-development-evidence-from-the-rohingya-refugees_Page_01.jpg?itok=ZnUTIDEq)
Forced displacement, mental health, and child development: Evidence from Rohingya refugees
10 May 2024