Wealth Effects in Emerging Market Economies

Tuomas A. Peltonen (), Ricardo Sousa and Isabel Vansteenkiste ()
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Tuomas A. Peltonen: European Central Bank

No 4/2009, NIPE Working Papers from NIPE - Universidade do Minho

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 markets wealth effects are, in general, smaller for Latin American countries; (iii) housing wealth effects have increased for Asian countries in recent years; and (iv) consumption reacts stronger to negative than to positive shocks in housing and financial wealth.

Keywords: wealth effects; consumption; emerging markets. (search for similar items in EconPapers)
JEL-codes: D12 E21 E44 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-cba, nep-mac and nep-ure
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Citations: View citations in EconPapers (22)

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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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