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Les effets réels du cours des actions sur la consommation

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  • Lise Pichette

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File URL: http://www.bankofcanada.ca/wp-content/uploads/2010/01/wp00-21.pdf
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Paper provided by Bank of Canada in its series Working Papers with number 00-21.

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Length: 49 pages Abstract: During the nineties, stock prices increased remarkably. The number of households owning stocks also rose considerably. If stock market wealth has an effect on consumers' decisions, then the rise in equity prices could have contributed to the growth in consumption in recent years. This paper examines the wealth effect resulting from an increase in the value of equity on aggregate consumption. To estimate this relationship, an error correction model has been chosen. Using Canadian data for the sample period first quarter of 1965 to the fourth quarter of 1998, the results show that fluctuations in equity prices have a statistically significant long-run effect on consumption (about 3 per cent of the asset prices change). Short-term variations seem to accelerate the adjustment of household spending to its long-term equilibrium.
Date of creation: 2000
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Handle: RePEc:bca:bocawp:00-21

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Keywords: Equity prices; stocks;

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Cited by:
  1. Peltonen, Tuomas A. & Sousa, Ricardo M. & Vansteenkiste, Isabel, 2009. "Wealth effects in emerging market economies," Working Paper Series 1000, European Central Bank.
  2. Nikola Dvornak & Marion Kohler, 2003. "Housing Wealth, Stock Market Wealth and Consumption: A Panel Analysis for Australia," RBA Research Discussion Papers rdp2003-07, Reserve Bank of Australia.
  3. Luis Miguel Pacheco & Jose Martins Barata, 2005. "Residential and Stock Market Effects on Consumption across Europe," International Journal of Housing Policy, Taylor & Francis Journals, vol. 5(3), pages 255-278.
  4. Lise Pichette, 2004. "Are Wealth Effects Important for Canada," Bank of Canada Review, Bank of Canada, vol. 2004(Spring), pages 29-35.
  5. Yanick Desnoyers, 2001. "L'effet de la richesse sur la consommation aux États-Unis," Working Papers 01-14, Bank of Canada.
  6. Sousa, Ricardo M., 2009. "Wealth effects on consumption: evidence from the euro area," Working Paper Series 1050, European Central Bank.
  7. Ricardo M. Sousa, 2003. "Property of stocks and wealth effects on consumption," NIPE Working Papers 2/2003, NIPE - Universidade do Minho.

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