Consumption asymmetry and the stock market: New evidence through a threshold adjustment model
Year: 2005
Type: preprint
Abstract: This paper investigates whether stock market wealth affects real consumption asymmetrically through a threshold adjustment model. The empirical findings for the US show that wealth produces an asymmetric effect on real consumption, with negative 'news' affecting consumption less than positive 'news.' Thus, policy makers may want to focus more attention on preventing asset 'bubbles' than on responding to negative asset shocks.
Authors: Nicholas Apergis, Stephen M. Miller
Institution: University of Macedonia
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1523980876