JOURNAL ARTICLE

Household assets and business cycle fluctuations.

  • Published In: Bulletin of Economic Research, 2025, v. 77, n. 1. P. 5 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Miura, Shogo 3 of 3

Abstract

This paper shows that an increase in the ratio of household assets to gross domestic product (GDP) predicts higher GDP growth in the short term, but lower growth in the long term. It is also associated with lower consumption, investment, and employment rates in the future. The result is robust to controlling for various economic indicators including credit spreads, household debt to GDP ratio, and leverage ratio. Finally, we estimate a structural vector autoregressive model and find that an increase in the interest rate is associated with a decrease in the household assets to GDP ratio, in contrast to the findings of Galí and Gambetti (2015, American Economic Journal: Macroeconomics, 7(1), 233–257). This appears to support the conventional view of monetary policy. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:Bulletin of Economic Research. 2025/01, Vol. 77, Issue 1, p5
  • Document Type:Article
  • Subject Area:Economics
  • Publication Date:2025
  • ISSN:0307-3378
  • DOI:10.1111/boer.12469
  • Accession Number:182048885
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