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wealth effect

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Wealth effect
The impact of changes in actual or perceived value of assets on consumption decisions. Changes in wealth that are perceived to be temporary will have a smaller effect on consumption expenditures than changes in wealth that are deemed permanent.
wealth effect
The relationship between personal wealth and consumer spending. According to the wealth effect consumers have a tendency to spend a larger proportion of personal income as their wealth increases. The wealth effect was used to explain increases in consumer spending in the late 1990s when stock prices boomed.
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The wealth effect is when a portfolio that is climbing impacts the spending decisions of the individual.
Next stock market panic has arrived by Andrew Mickey / Stockhouse
The positive combined wealth effect for acquisitions is consistent with the synergistic theory.
Abnormal returns to mergers and acquisitions in ten Asian stock ... by Ma, Jianyu; Pagan, Jose A.; Chu, Yun / International Journal of Business
The models of the wealth effect suggest that a dollar loss in either the stock market or housing wealth has a roughly similar effect on consumption, so the course of the stock market is likely to have a more important effect on consumption than the course of housing prices.
The week's top news in world financial markets from maximus capital by The Baltic Times (Riga, Latvia)
 
 
 
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