Wealth Effects on World Private Financial Saving
28 Pages Posted: 19 Dec 2014
Date Written: December 17, 2014
This paper shows that about 70 percent of the variance of the yearly change in the world private financial saving rate can be explained by lagged changes in world stock and housing prices for the sample period 1982-2013. The results suggest that increased fluctuations in asset prices since 1995 have led to increased fluctuations in the world private financial saving rate. Wealth effects on private demand appear to be large.
Keywords: Financial saving, World economy, Wealth effects
JEL Classification: E21, E44, F41
Suggested Citation: Suggested Citation