Consumption and stock markets in Greater China
AbstractThis study investigates the causal links between stock market performance and consumption for Greater China using a VECM framework. Bi-directional causality between stock prices and consumption is found for Hong Kong and Taiwan. This indicates that the previous studies may have overestimated the wealth effect of stock markets without taking account of the reverse causation from consumption to the stock markets. Only one-way causality running from consumption to stock prices has been established for Mainland China.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 11 (2004)
Issue (Month): 6 ()
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Web page: http://www.tandfonline.com/RAEL20
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1998-20, Board of Governors of the Federal Reserve System (U.S.).
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