Wealth effects in emerging market economies

Tuomas A. Peltonen, Ricardo Sousa and Isabel Vansteenkiste ()

No 1000, Working Paper Series from European Central Bank

Abstract: We build a panel of 14 emerging economies to estimate the magnitude of housing, stock market, and money wealth effects on consumption. Using modern panel data econometric techniques and quarterly data for the period 1990:1-2008:2, we show that: (i) wealth effects are statistically significant and relatively large in magnitude; (ii) housing wealth effects tend to be smaller for Asian emerging markets while stock market wealth effects are, in general, smaller for Latin American countries; (iii) housing wealth effects have increased for Asian coutries in recent years; and (iv) consumption reacts stronger to negative than to positive shocks in housing and financial wealth. JEL Classification: E21, E44, D12

Keywords: consumption; emerging markets.; wealth e¤ects (search for similar items in EconPapers)
Date: 2009-01
New Economics Papers: this item is included in nep-ure
Note: 355041
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Related works:
Journal Article: Wealth effects in emerging market economies (2012)
Working Paper: Wealth Effects in Emerging Market Economies (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20091000

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