The Effects of Cryptocurrency Wealth on Household Consumption and Investment

Authors

• Darren Aiello, Brigham Young University - ProvoFollow
• Scott R. Baker, Northwestern University
• Tetyana Balyuk, Emory University
• Marco Di Maggio, Harvard University
• Mark Johnson, Brigham Young University - Provo
• Jason Kotter, Brigham Young University - ProvoFollow
• Emily Williams, Harvard University

Keywords

retail crypto portfolios, inflation expectations, housing wealth effects

Abstract

Key Results:

• Retail crypto investors hold crypto as one part of a broader portfolio
• Inflation expectations drive crypto investment
• Marginal propensity to consume (MPC) out of crypto wealth is big!
• Households use crypto wealth to purchase housing
• As a result, crypto wealth shocks spill over into local house prices

BYU ScholarsArchive Citation

Aiello, Darren; Baker, Scott R.; Balyuk, Tetyana; Maggio, Marco Di; Johnson, Mark; Kotter, Jason; and Williams, Emily, "The Effects of Cryptocurrency Wealth on Household Consumption and Investment" (2023). Faculty Publications. 9202.
https://scholarsarchive.byu.edu/facpub/9202

Document Type

Peer-Reviewed Article

Publication Date

2023

Language

English

College

Marriott School of Business

Department

Finance

University Standing at Time of Publication

Assistant Professor

Copyright Use Information

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