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Consumption Asymmetry and the Stock Market: Empirical Evidence

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Author Info
Nicholas Apergis (University of Macedonia, Greece)
Stephen M. Miller (University of Connecticut and University of Nevada, Las Vegas)

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Abstract

This paper examines whether U.S. stock-market wealth asymmetrically affects consumption. After identifying asymmetric behavior for consumption and stock market wealth, the results confirm that stock-market wealth asymmetrically affects real per capita consumption. Negative 'news' affects consumption more than positive 'news'.

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Publisher Info
Paper provided by University of Connecticut, Department of Economics in its series Working papers with number 2004-43.

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Length: 14 pages
Date of creation: Oct 2004
Date of revision: Apr 2006
Publication status: Published in Economics Letters, December 2006
Handle: RePEc:uct:uconnp:2004-43

Note: The authors express special thanks to Angelos Antzoulatos, Georgios Karras, and Plutarchos Sakellaris for their comments on an earlier draft. Nonetheless, the usual disclaimer applies.
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Related research
Keywords: Consumption; Stock market; Wealth effect; Asymmetry;

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Find related papers by JEL classification:
E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Mauro Mastrogiacomo, 2006. "Testing consumers' asymmetric reaction to wealth changes," CPB Discussion Papers 53, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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