Homeowners do not increase consumption despite their property rising in value, research shows
Wednesday, May 15, 2013 - 10:54
in Mathematics & Economics
Although the value of our property might rise, we do not on that account increase our consumption. This is the conclusion by economists from University of Copenhagen and University of Oxford in new research which is contrary to the widely believed assumption amongst economists that if there occurs a rise in house prices then a natural rise in consumption will follow. The results of the study is published in the scientific journal The Economic Journal.