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Wealth and asset price effects on economic activity

Author

Listed:
  • Karl Whelan
  • Filippo Altissimo
  • Evaggelia Georgiou
  • Teresa Sastre
  • Maria Teresa Valderrama
  • Gabriel Sterne
  • Marc Stocker
  • Mark Weth
  • Alpo Willman

Abstract

Do asset prices affect real activity? This question has taken on a new importance in recent years, as asset values first surged at the end of 1990s and, thereafter, dramatically retreated. This report reviews the available theoretical and empirical evidence regarding asset price and wealth effects in Europe and some other major economies. The main focus of this report is on consumption effects via the wealth channel, reflecting the bulk of literature on the effects of asset prices. However, asset price effects on investment via the Tobin JEL Classification: D1, D3, D9, G11
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Karl Whelan & Filippo Altissimo & Evaggelia Georgiou & Teresa Sastre & Maria Teresa Valderrama & Gabriel Sterne & Marc Stocker & Mark Weth & Alpo Willman, 2005. "Wealth and asset price effects on economic activity," Open Access publications 10197/210, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:oapubs:10197/210
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    File URL: http://hdl.handle.net/10197/210
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    as
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    More about this item

    Keywords

    Wealth; Assets (Accounting); Economic development;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D3 - Microeconomics - - Distribution
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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