2026-04-18T07:24:35Zhttps://recercat.cat/oai/request

oai:recercat.cat:10230/355072025-12-24T02:05:23Zcom_2072_6col_2072_452953

00925njm 22002777a 4500 dc Hintermaier, Thomas author Koeniger, Winfried author 2018-09-26T15:58:57Z 2018-09-26T15:58:57Z 2018-05 This paper quantifies the extent of heterogeneity in consumption responses to changes in real interest rates and house prices in the four largest economies in the euro area: France, Germany, Italy, and Spain. We first calibrate a life-cycle incomplete-markets model with a liquid financial asset and illiquid housing to match the large heterogeneity of households asset portfolios, observed in the Household Finance and Consumption Survey (HFCS) for these countries. We then show that the heterogeneity in household finances implies that responses of consumption to changes in the real interest rate and in house prices differ substantially across the analyzed countries, and across age groups within these countries. The different consumption responses quantified in this paper point towards important heterogeneity in monetary-policy transmission within the euro area. The ADEMU Working Paper Series is being supported by the European Commission Horizon 2020 European Union funding for Research & Innovation, grant agreement No 649396. European household portfolios Consumption Monetary policy transmission International comparative finance Housing Differences in euro-area household finances and their relevance for monetary-policy transmission