- Additional Authors
- Description
- 28 p.; 21 x 29.7cm.
- Summary
- This paper examines the likely influence of recent stock market fluctuations on major OECD economies, focusing on wealth effects and consumption. After reviewing the relevant theoretical framework and available empirical evidence, consumption functions are estimated for the US including the influence of financial wealth. The resulting estimates of the marginal propensity to consume out of financial wealth are extrapolated to other G7 countries, allowing for differences in stock market capitalisation, and compared with ones obtained more directly from consumption functions that include stock market prices as an explanatory variable. Simulations are then carried out to assess the potential world impact of a major fall in stock market prices in the G7 countries using a version of the OECD INTERLINK model which embodies the latter equations. The overall effects are found to be significant, particularly when relevant international linkage mechanisms are taken into account ...
- Series Statement
- OECD Economics Department Working Papers, 1815-1973 ; no.208
- Uniform Title
- OECD Economics Department Working Papers, no.208.
- Subject
- Economics
- LCCN
- 10.1787/853414662323
- OCLC
- oecd-lib
- Author
Boone, Laurence.
- Title
Stock Market Fluctuations and Consumption Behaviour [electronic resource]: Some Recent Evidence / Laurence Boone, Claude Giorno and Pete Richardson
- Imprint
Paris : OECD Publishing, 1998.
- Series
OECD Economics Department Working Papers, 1815-1973 ; no.208
OECD Economics Department Working Papers, 1815-1973 ; no.208.
- Connect to:
- Indexed Term
Economics
- Added Author
Giorno, Claude.
Richardson, Pete.
- Other Standard Identifier
10.1787/853414662323 doi