Moreover, financial assets now account for a larger share of household wealth, making the wealth effect of a stockmarket crash potentially much larger.
Mr Poterba reckons the lower estimates of the wealth effect during the 1990s are more plausible.
And she has welcomed any acceptance by the Tories that the "trickle down effect" of wealth from the richest to the poorest did not work.
Greenspan is worried about the inflationary implications of the wealth effect, but the country doesn't want to hear it.
Yes, I realize one may argue that the stock market is not an accurate measure of the economy but the wealth effect is powerful and a rising stock market has definitely improved the general mood of the investing public thereby allowing them to put some of their new found savings to work.
The authors find an effect of housing wealth on consumer spending that is both much lower than earlier research suggests and a lot smaller than the effect of changes in equity wealth.
The Fed justified its second round of quantitative easing partly on grounds that the wealth effect of rising stock prices would stimulate consumer spending and, by extension, boost output and reduce unemployment.
The wealth effect explains the buoyancy of retail sales, homebuilding and the high plateau of auto volume.
Only an eye-witness can give an account of the sudden effect which currency reform had on the size of stocks and the wealth of goods on display.
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Private consumption is picking up and will continue as the wealth effect of a stock-market bull run kicks in.
Also, stocks are owned by a much smaller portion of the population in China than the U.S., which means many fewer people feel the wealth effect of a rally.
House price weakness helps the buyer, who is usually less wealthy than the seller, one of several factors muting the negative wealth effect.
In the past, the magnitude of this wealth effect has been fairly modest, but it may have grown in many countries over the past decade or so as financial wealth has increased relative to income.
Opponents will argue that the wealth of the upper class should have no effect on the lower classes.
Rising stock prices have the potential to stimulate household spending due to the wealth effect, and that could raise the likelihood of economic recovery.
In this video I explain that I write about what I consider to be the definition of wealth management: the small changes which have great effect over time.
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With Wall Street wobbling for much of this year, the wealth effect from share prices may be weakening too.
Even a small decline in growth can have a large impact on future income and wealth, because of the effect of compounding.
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The Fed's bet is that the wealth effect will trigger a virtuous cycle of confidence, investment and faster future growth.
America (and other economies) have been enjoying a very different sort of wealth creation: the Fed is in effect printing it.
Curbing the excesses of wealth, then, will be a side effect of regulations designed to make capitalism work better.
All this shifting of wealth is a zero-sum game and the net effect on incomes is usually zero, or even negative.
This redistribution of wealth, whose effect is every bit as powerful as changes in the tax code, never surfaces in public debate.
Baird, of Plante Moran, has a different view, attributing the improvement to the wealth effect, which Bernanke has actively pursued.
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In a new National Bureau of Economic Research paper, the three economists argue that earlier analyses overstate the wealth effect because they do not account for the fact that people who expect to earn more in the future may bid up house prices.
There is also a wealth effect whereby home-owners feel richer, and spend more, as the value of their homes increase.
Although some are expecting some form of QE3, Bernanke may need to provide a surprise in order to juice the stock market, which continues to be one of his goals (i.e. wealth effect).
The effect has been so widespread that marketing now ranks as one of the most popular undergraduate majors in the US, and a wealth of future ad men has flooded the job market.
Moreover, more of this IRA wealth is likely to be left to children in the future because of a provision that took effect in 2010 allowing all taxpayers to convert traditional pre-tax IRAs into Roth IRAs.
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