The Wealth Effect In Equity And Fixed IncomeUndergraduate Economic Review
AbstractIndividual consumption and saving decisions are integral to aggregate economic growth, demonstrated in economic theories such as the exogenous growth model. Behavioral economists have posited that a “wealth effect” plays a factor in individual consumption patterns. In this paper, I use the 1999-2007 cohorts of the Panel Survey of Income Dynamics to explore evidence of a wealth effect in stock equity and fixed income. Using panel data estimation techniques, I find no evidence of a wealth effect stemming from equity or fixed income gains among individuals with concentrated financial wealth.
Citation InformationJason K Boldt. "The Wealth Effect In Equity And Fixed Income"
Available at: http://works.bepress.com/jasonkboldt/1/