International Economics

<< N°149

Issue Q1 2017  
Wealth effects on world private financial saving  
Ray C. Fair
This paper shows that about 70% 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 values for the sample period 1982–2013. A theory consistent with these results is that world asset-value changes affect world consumption and investment spending, which affects the world private financial saving rate.

Financial saving ; World economy ; Wealth effects ; Keywords
E21 ; E44 ; F41 ; JEL classification
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