Updating on Housing Wealth and Consumption in Sweden
Using the most recent data from 1996 to 2016, I examine the more current relationship between housing wealth and private consumption. I extend the Life-Cycle Hypothesis and separate wealth into housing wealth from financial wealth. The main method em-ployed is the Engle-Granger two-step method. Combined with the use of quarterly data, the method allows investigation of the long-term and short-term