wealth effect


Also found in: Financial, Wikipedia.

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 ?
Looking in turn at European tourism trends, and international tourism and travel industry trends, they consider such topics as modeling the wealth effect and demand for tourism departure in Europe: a panel data approach, tourist arrivals and road victims: evidence from Mediterranean regions, tourism and the travel industry and its effect of the great recession: a multilevel survival analysis, and Kaldor's income distribution and tourism specialization: evidence from selected countries.
Sentiment softened as the Dow Jones Industrial Average fell 6% for the year, with concerns that investors would experience a negative wealth effect. Tighter credit in India and rising demand for lab-grown diamonds contributed to the trade's caution.
Moreover, it becomes easy to also illustrate a type of income effect, which might rather be referred to as a "wealth effect."
By definition, 'the wealth effect is the change in spending that accompanies a change in perceived wealth.' Spending changes in the same direction as perceived wealth.
Moreover, results of the individual asset prices show that prices of two assets, housing and share prices, via positive wealth effect, lead to an increase in the demand for money balances in Pakistan.
Three other analysis were conducted that examined the effects of wealth on dementia risk: the total effect of wealth, the direct effect of wealth, and what was called the 'indirect wealth effect.' This examined the impact of wealth on LIBRA scores, followed by the effect of these scores on dementia risk.
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.
The media's focus fosters the well-known symptom of the "wealth effect" that ignores nagging trends such as massive student loan debts, stagnant wage growth or the radical and disruptive transformations in the economy.
Although some wealth effect studies focus almost exclusively on changes in stock valuations, other assets should not be neglected.
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." The adverse wealth effect from the decrease in the value of carbon assets would be small; and, with the capital stock badly out of sync with the new price system, the investment unleashed would be large, unless there were bottlenecks in closing the gap.