Wealth Effect of Stock Market:An Interpretation and Verification Based on LC-PIH Hypothesis

摘要：

The permanent income hypothesis and the life-cycle hypothesis can respectively explain the wealth effect of stock market to some extent.This paper believes that the LC-PIH hypothesis can interpret the effect better.Once the stock market is booming sustained,the positive wealth effect will come into effect,which will increase the wealth of investors and their better expectation of economic growth,stimulate the social consumption to go up,enlarge the short-term marginal propensity to consume,and then yield the economic growth.If the stock market were recessive,the negative wealth effect would come into effect.Our result shows that the wealth effect of stock market in China doesnt perform well because of several restricted factors.1

关键词： Stock Market Wealth Effect Consumption Function

作者: Chicheng Luo Jianjiang Liu Xin Wang Xiangdong Lian

作者单位: Hunan University,Changsha,Hunan,410082 School of Economy,Changsha University of Science and Technology,Changsha,Hunan 410076

会议类型: 国际会议

会议名称: The 2008 International Conference on Business Intelligence and Financial Engineering(BIFE 2008)(商业智能和金融工程国际会议)

会议地点: 长沙

会议语种:英文

页码: 817-822

在线出版日期: 2008-10-28（万方平台首次上网日期，不代表论文的发表时间）