wealth effect


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wealth effect

n.
A tendency on the part of consumers to spend more when they feel wealthier or more financially secure, as when their investments or homes increase in value.
References in periodicals archive ?
Stock wealth increases somewhat more than housing wealth declines because of the tax law changes, but the housing wealth effect is currently a bit larger than the stock wealth effect.
Bull markets, animal spirits and the wealth effect can all create opportunities for missteps, oversteps and broken bones.
2005) determined a stronger wealth effect on consumption through housing markets than stock markets.
The wealth effect of rising liquid assets, such as bank deposits, was even greater --almost $9 for each $100 increase in wealth.
Almost surely, this stimulus would exceed the contractionary effect of money being taken out of the system and the negative wealth effect of the decreased value of "carbon assets.
Due to availability of limited avenues, increased investment of remittances in real estate or the stock market can push up asset prices which may exert a wealth effect.
they didn't find that it exacerbated the wealth effect.
Finally, the strong persistence of a wealth effect despite these added controls suggests that the Medicaid implicit tax may preclude some lower asset individuals from even considering private insurance.
Ultra-low interest rates and large-scale asset purchases were supposed to create a wealth effect and stimulate real growth, but those effects have been weak at best.
It wasn't apparent that there was an enormous wealth effect on the economy as the market was rising, but I guess we won't really know until we see the result of the pendulum swinging the other way.
This in turn should have a positive wealth effect, with some resultant capital flows likely to benefit those real estate markets already popular with foreigners; an obvious example in the GCC is Dubai, where in H1 2014, around three-quarters of real estate investors were non-nationals.
The magnitude of the wealth effect will be governed by how much total lifetime income is expected to decline.