Comparing Housing Wealth and Stock Wealth Effects on Consumption

How strongly does consumption respond to changes in wealth? Is the response to housing wealth different than the response to stock market wealth? Policymakers are currently very interested in the magnitudes of such wealth effects, in light of the recent boom and crash in stock prices and the current strength in housing prices. We are trying to estimate the propensity to consume out of various types of wealth and are updating previous studies using time-series data at the national level.