Asymmetric Wealth Effects on Consumption: A Threshold Cointegration Approach on Swedish Households
Recognising the macroeconomic importance of private consumption, this thesis aims at examining possible forces that drive changes the level of households’ consumption. I do so by analysing the relationship of housing wealth, financial wealth, and consumption of households in Sweden in the short and long run. Using an M-TAR approach I find evidence for cointegration of these variables. Housing weal
