Consumption Asymmetry and the Stock Market: Empirical Evidence
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'.
|Date of creation:||Oct 2004|
|Date of revision:||Apr 2006|
|Publication status:||Published in Economics Letters, December 2006|
|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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