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Price Expectations and Households' Demand for Financial Assets

In: Explorations in Economic Research, Volume 1, number 2

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  • Lester D. Taylor

Abstract

The effects of price expectations on consumption and saving has received relatively little attention, especially at the micro level. This paper's effort is addressed to this void. More specifically, the paper's primary purpose is to investigate whether it is possible to discern empirically a relationship between individually held price expectations and decisions of households to hold particular types of assets. To this end, I have analyzed aggregate time - series data from the National Income Accounts and the Flow-of-Funds and two bodies of micro household data, each involving several thousand households and each containing fairly detailed information on price expectations.
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Suggested Citation

  • Lester D. Taylor, 1974. "Price Expectations and Households' Demand for Financial Assets," NBER Chapters, in: Explorations in Economic Research, Volume 1, number 2, pages 258-339, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:7399
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    References listed on IDEAS

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    1. Pyle, David H, 1972. "Observed Price Expectations and Interest Rates," The Review of Economics and Statistics, MIT Press, vol. 54(3), pages 275-280, August.
    2. Robert J. Gordon, 1971. "Inflation in Recession and Recovery," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 2(1), pages 105-166.
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    11. repec:bla:econom:v:39:y:1972:i:153:p:1-17 is not listed on IDEAS
    12. Mirman, Leonard J, 1971. "Uncertainty and Optimal Consumption Decisions," Econometrica, Econometric Society, vol. 39(1), pages 179-185, January.
    13. F. Thomas Juster & Paul Wachtel, 1972. "Inflation and the Consumer," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 3(1), pages 71-122.
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    17. Paul Wachtel, 1972. "A Model of Interrelated Demand for Assets by Households," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 1, number 2, pages 129-140, National Bureau of Economic Research, Inc.
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