Wealth effects in emerging market economies

Arbeitspapier

We build a panel of 14 emerging economies to estimate the magnitude of housing, stock market, and money wealth effects on consumption. Using modern panel data econometric techniques and quarterly data for the period 1990:1-2008:2, we show that: (i) wealth effects are statistically significant and relatively large in magnitude; (ii) housing wealth effects tend to be smaller for Asian emerging markets while stock market wealth effects are, in general, smaller for Latin American countries; (iii) housing wealth effects have increased for Asian coutries in recent years; and (iv) consumption reacts stronger to negative than to positive shocks in housing and financial wealth.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 1000

Classification and Topics

• Classification: Wirtschaft ; Macroeconomics: Consumption; Saving; Wealth ; Financial Markets and the Macroeconomy ; Consumer Economics: Empirical Analysis
• Subject: Consumption ; emerging markets ; wealth e¤ects ; Vermögenseffekt ; Privater Konsum ; Schwellenländer ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Peltonen, Tuomas A. ; Sousa, Ricardo M. ; Vansteenkiste, Isabel
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/153434
• Last update: 10.03.2025, 11:42 AM CET