IDEAS home Printed from https://ideas.repec.org/a/vrs/subboe/v70y2025i1p112-125n1006.html
   My bibliography  Save this article

Wealth Effects in the CEE Emerging Economies: A Long-Run Panel Approach

Author

Listed:
  • Burdet Florina

    (Babeș-Bolyai University, Romania)

Abstract

This paper explores the relationship between actual individual consumption, housing wealth, and stock wealth in a panel of emerging European Union economies. Using the pooled mean group estimator (PMG) and a crisis dummy variable, the analysis captures the effects of the 2008–2010 financial crisis. Results indicate that both housing and stock wealth positively influence consumption, with housing wealth having a slightly stronger impact. Consumption is also sensitive to long-term changes in the income from wages and salaries. Particularly during the crisis, when real estate market downturns significantly affected households in Central and Eastern Europe (CEE), the effect of changes in asset prices raised in magnitude. The findings offer important policy implications for managing asset price effects on household consumption, particularly in emerging markets.

Suggested Citation

  • Burdet Florina, 2025. "Wealth Effects in the CEE Emerging Economies: A Long-Run Panel Approach," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 70(1), pages 112-125.
    • Handle: RePEc:vrs:subboe:v:70:y:2025:i:1:p:112-125:n:1006
    DOI: 10.2478/subboec-2025-0006
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/subboec-2025-0006
    Download Restriction: no
    File URL: https://libkey.io/10.2478/subboec-2025-0006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    actual individual consumption; housing wealth; stock wealth; panel cointegration analysis;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:subboe:v:70:y:2025:i:1:p:112-125:n:1006. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.