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Glossary > T > "The Wealth Effect" Definition

The Wealth Effect

The propensity of people to spend more if they have more assets. The premise is that when the value of equities rises, so does our wealth and disposable income. Therefore, we feel more comfortable about spending.

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The Wealth Effect - The propensity of people to spend more if they have more assets. The premise is that when the value of equities rises, so does our wealth and disposable income. Therefore, we feel more comfortable about spending.

The Wealth Effect : the propensity of people to spend more if they have more assets. the premise is that when the value of equities rises, so does our wealth and disposable income. therefore, we feel more comfortable about spending.