Saturday, January 16, 2021

Wealth Effects and Macroeconomic Dynamics

An article written by Cooper and Dynan (2014). Excerpt:

"...a great deal of empirical research over the last 25 years has focused on the so‐called wealth effects – the impact of changes in wealth on household consumption and the overall macroeconomy. Such studies have used different types of data and frameworks to examine the relationship between wealth and spending, including macroeconomic time series, cross‐country comparisons, within‐country regional comparisons, household survey results, and credit bureau records. The existing literature also considers how the wealth effects vary across countries. Overall, the research has yielded some important findings about the nature of household wealth effects, but consensus has yet to be reached on many important issues."

https://onlinelibrary.wiley.com/doi/full/10.1111/joes.12090







Image: Sage Publications - Smartonomics

No comments:

Post a Comment

The Ringgit Rebound

As of 23 September 2024, the ringgit ringgit has risen more than 12% against the dollar this quarter, making it the best performing emerging...