Resurrecting the Wealth Effect on Consumption: Further Analysis and Extension
نویسندگان
چکیده
Abstract: This paper investigates whether various components of wealth affect real consumption asymmetrically through a threshold adjustment model. The empirical findings for the U.S. show that only stock market assets, financial assets including stock market assets, and household net assets exert a practical wealth effect on consumption expenditure. By contrast, financial assets excluding stock market assets, tangible assets, total assets, and the Lettau-Ludvigson measure of net assets do not exert a practical wealth effect on consumption expenditure. In addition, the empirical findings favor the presence of an asymmetric effect on real consumption for the former cases, with negative 'news' affecting consumption less than positive 'news'.
منابع مشابه
The Effect of Different Traits on Yield and Water Productivity in Surface and Subsurface Drip Irrigation of Kabkab Variety
Increasing crop production per unit volume of water consumption requires recognizing the most dependent variable in drip irrigation to the volume of water consumption and also identifying the most important variables independent of water productivity in surface and subsurface drip irrigation for optimal use of available water resources. The present research was carried out in Behbahan Agricultu...
متن کاملEnergy Consumption Analysis and Effect of Broiler Chicken Capacity on Energy Indices (A Case Study in Alborz Province)
With increasing population, demand for chicken meat has increased and resource constraints have led to increased production with an emphasis on improving the productivity of inputs and energy indices, so studying energy consumption in broiler production is important. One of the important issue in broiler industry is energy consumption. In this study, energy consumption flow and amount of energy...
متن کاملThe Effect of Zakat on Consumption Stability in the Iranian Economy in the form of the New Keynesian DSGE Model
Household Consumption Decisions Have a Significant Impact on The Behavior of Macroeconomic Variables in The Short and Long Run. One of The Factors Affecting the Consumption of Households in an Islamic Society Is Zakat, Which Is Established in Islam to Combat Poverty and Acts as a Tool to Redistribute Income and Wealth from The Rich to The Poor and Plays an Important Role In Ensuring Justice and...
متن کاملStudy of Educational-extension strategies for optimal water consumption management to deal with drought in the border area of Dorrh section of Sarbisheh city, South Khorasan province
The Agricultural Sector has the highest share in creating the water crisis in Iran; therefore managing optimal use of water resources is inevitable. The purpose of this study is to investigate educational- extension strategies for optimal water consumption management to deal with drought in Dorroh section. This research was conducted by survey method and the data were collected using a question...
متن کاملHousing Wealth, Stock Market Wealth and Consumption: a Panel Analysis for Australia
This paper addresses the question of how changes in stock market wealth and housing wealth affect consumption expenditure in Australia. We approach the problem using a panel of Australian states, for which we construct data on housing and stock market wealth. We estimate the link between consumption and the components of wealth using panel-data estimation techniques, including fixed-effects ins...
متن کامل