The Effect of stock market wealth on private consumption in Zimbabwe
The study seeks to examine stock market wealth effects on private non-durable consumption for Zimbabwean households using quarterly data from 1994(1) to 2008(2). The bounds testing approach to cointegration is employed to test the long run relationship between stock market wealth and consumption. An autoregressive distributed lag model (ARDL) analysis is implemented to examine the relationship among the variables both in the short-run and the long run. The empirical findings suggest significant wealth effects for Zimbabwe, a developing country. This contradicts the commonly held view that LDCs should have insignificant wealth effect since the financial system is still underdeveloped. The dynamic short run error correction model also shows a speedy convergence to long run equilibrium.
Volume (Year): 4 (2011)
Issue (Month): 2 (August)
|Contact details of provider:|| Web page: http://ijbesar.teiemt.gr/|
More information through EDIRC
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.:
- Paresh Kumar Narayan & Russell Smyth, 2006.
"Dead man walking: an empirical reassessment of the deterrent effect of capital punishment using the bounds testing approach to cointegration,"
Taylor & Francis Journals, vol. 38(17), pages 1975-1989.
- Paresh Narayan & Russell Smyth, . "Dead Man Walking: An Empirical Reassessment of the Deterrent Effect of Capital Punishment Using the Bounds Testing Approach to Cointegration," American Law & Economics Association Annual Meetings 1028, American Law & Economics Association.
- Russell Smyth & Paresh Kumar Narayan, 2004. "Dead Man Walking: An Empirical Reassessment of the Deterrent Effect of Capital Punishment Using the Bounds Testing Approach to Cointegration," Econometric Society 2004 Australasian Meetings 332, Econometric Society.
- Peltonen, Tuomas A. & Sousa, Ricardo M. & Vansteenkiste, Isabel, 2009.
"Wealth effects in emerging market economies,"
Working Paper Series
1000, European Central Bank.
- Lise Pichette, 2004.
"Are Wealth Effects Important for Canada,"
Bank of Canada Review,
Bank of Canada, vol. 2004(Spring), pages 29-35.
- Paiella, Monica, 2007.
"Does wealth affect consumption? Evidence for Italy,"
Journal of Macroeconomics,
Elsevier, vol. 29(1), pages 189-205, March.
- Monica Paiella, 2004. "Does wealth affect consumption? Evidence for Italy," Temi di discussione (Economic working papers) 510, Bank of Italy, Economic Research and International Relations Area.
- Orazio P. Attanasio & James Banks & Sarah Tanner, 2002.
"Asset Holding and Consumption Volatility,"
Journal of Political Economy,
University of Chicago Press, vol. 110(4), pages 771-792, August.
- Orazio Attanasio & James Banks & Sarah Tanner, 1998. "Asset Holding and Consumption Volatility," NBER Working Papers 6567, National Bureau of Economic Research, Inc.
- Orazio Attanasio & James Banks & Sarah Tanner, 1998. "Asset holding and consumption volatility," IFS Working Papers W98/08, Institute for Fiscal Studies.
- repec:cup:cbooks:9780521633239 is not listed on IDEAS
- Keith Jefferis & Charles Okeahalam, 2000. "The impact of economic fundamentals on stock markets in southern Africa," Development Southern Africa, Taylor & Francis Journals, vol. 17(1), pages 23-51.
- Martha Starr-McCluer, 1998.
"Stock market wealth and consumer spending,"
Finance and Economics Discussion Series
1998-20, Board of Governors of the Federal Reserve System (U.S.).
- repec:cup:cbooks:9780521633659 is not listed on IDEAS
- Nikola Dvornak & Marion Kohler, 2007.
"Housing Wealth, Stock Market Wealth and Consumption: A Panel Analysis for Australia,"
The Economic Record,
The Economic Society of Australia, vol. 83(261), pages 117-130, 06.
- 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.
- Alexander Ludwig & Torsten SlÃ¸k, 2002. "The Impact of Changes in Stock Prices and House Priceson Consumption in OECD Countries," IMF Working Papers 02/1, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:tei:journl:v:4:y:2011:i:2:p:125-142. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kostas Stergidis)
If references are entirely missing, you can add them using this form.