wealth effect

wealth effect
wealth effect wealth effect effect

* * *

wealth effect UK US noun [S] ECONOMICS
the theory that when the value of assets such as gold, shares, and property rises, people spend more: »

One of the primary drivers of spending by American consumers is the wealth effect of rising share prices.


Financial and business terms. 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • Wealth effect — The wealth effect is an economic term, referring to an increase in spending that accompanies an increase or perceived increase in wealth.Effect on individualsThe effect would cause changes in the amounts and composition of consumer consumption… …   Wikipedia

  • wealth effect — (WELTH uh.fekt; TH as in thin) n. An increase in consumer spending based on the perceived wealth created by the escalating value of stock market portfolios. Example Citation: Big portfolio gains by investors in recent years have created what… …   New words

  • wealth effect — outspending income because stock market boom makes one feel rich …   Eponyms, nicknames, and geographical games

  • The Wealth Effect — The premise that when the value of stock portfolios rises due to escalating stock prices, investors feel more comfortable and secure about their wealth, causing them to spend more. For example, economists in 1968 were baffled when a 10% tax hike… …   Investment dictionary

  • Wealth elasticity of demand — in microeconomics is the relation of the proportional change in consumption of a good to a proportional change in wealth (as distinct from changes in personal income). Measuring and accounting for the variability in this elasticity is a… …   Wikipedia

  • Wealth — For other uses, see Wealth (disambiguation). Wealth is the abundance of valuable resources or material possessions. The word wealth is derived from the old English wela, which is from an Indo European word stem.[1] An individual, community,… …   Wikipedia

  • effect — ▪ I. effect ef‧fect 1 [ɪˈfekt] noun 1. [countable, uncountable] the way in which an action, event, or person changes someone or something: • Inflation is having a disastrous effect on the economy. demonˈstration efˌfect [singular] …   Financial and business terms

  • Wealth (economics) — In economics and business, wealth of a person or nation is the value of assets owned net of liabilities owed (to foreigners in the case of a nation) at a point in time. The assets include those that are tangible (land and capital) and financial… …   Wikipedia

  • Wealth inequality in the United States — refers to the unequal distribution of financial assets among residents of the United States. Wealth includes the values of homes, automobiles, businesses, savings, and investments [Hurst, Charles E. Social Inequality: Forms, Causes, and… …   Wikipedia

  • Wealth concentration — Wealth Concentration, also known as wealth condensation, is a process by which, in certain conditions, newly created wealth tends to become concentrated in the possession of already wealthy individuals or entities, a form of preferential… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”