Wealth Effects on World Private Financial Saving

28 Pages Posted: 19 Dec 2014

See all articles by Ray C. Fair

Ray C. Fair

Yale University - Cowles Foundation; Yale School of Management - International Center for Finance

Date Written: December 17, 2014

Abstract

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

Fair, Ray C., Wealth Effects on World Private Financial Saving (December 17, 2014). Cowles Foundation Discussion Paper No. 1974. Available at SSRN: https://ssrn.com/abstract=2539617 or http://dx.doi.org/10.2139/ssrn.2539617

Ray C. Fair (Contact Author)

Yale University - Cowles Foundation ( email )

Box 208281
New Haven, CT 06520-8281
United States
203-432-3715 (Phone)
203-432-6167 (Fax)

HOME PAGE: http://fairmodel.econ.yale.edu

Yale School of Management - International Center for Finance ( email )

Box 208200
New Haven, CT 06520
United States
203-432-3715 (Phone)
203-432-6167 (Fax)

HOME PAGE: http://fairmodel.econ.yale.edu

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
38
Abstract Views
369
PlumX Metrics