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The relationship between financial asset returns and the well-being of US households

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  • Lee A. Smales

Abstract

This note considers the effect of changes on the well-being of US residents owing to changes in the value of various financial assets. Ordinary least squares estimates reveal that equity market returns have a significant and asymmetric, impact on the well-being. This result is likely the result of a wealth effect whereby rising (falling) stock markets increase (decrease) the ability to meet basic needs and this contributes to a shifting assessment of life-situation and overall well-being.

Suggested Citation

  • Lee A. Smales, 2014. "The relationship between financial asset returns and the well-being of US households," Applied Economics Letters, Taylor & Francis Journals, vol. 21(17), pages 1184-1188, November.
    • Handle: RePEc:taf:apeclt:v:21:y:2014:i:17:p:1184-1188
    DOI: 10.1080/13504851.2014.916380
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    References listed on IDEAS

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    1. repec:pri:cepsud:125krueger is not listed on IDEAS
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    Cited by:

    1. Mahendru, Mandeep & Sharma, Gagan Deep & Pereira, Vijay & Gupta, Mansi & Mundi, Hardeep Singh, 2022. "Is it all about money honey? Analyzing and mapping financial well-being research and identifying future research agenda," Journal of Business Research, Elsevier, vol. 150(C), pages 417-436.

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