Title: The Comparative Analysis on the Difference in Wealth Effect Between Financial Assets and Housing Assets in China
Abstract: This paper shows that the wealth effect of residents' fiance and housing assets exists,the finance wealth effect is bigger than that housing wealth effect.These characteristics are determined by the following factors.The first is that finance assets which are the main component of residents' assets increases more stably than that of housing asset.The second is that the low profit of financial assets and the fluctuation of stock market have a negative impact on wealth effect.The third is that housing prices are relatively higher than residents' income.The last is that the excessive sensitivity weakens the wealth effect of two kinds of assets.In order to improve residents' consumptions and national demands through wealth effect,we should take actions to explore many kinds of investment styles and increase residents' property incomes,and secondly we should enhance the stable development of stock market,and thirdly we should carry out constrictive monetary policy,and control the soaring price of housing,and keep the stable development of housing market,and finally we should improve residents' income and family assets.
Publication Year: 2008
Publication Date: 2008-01-01
Language: en
Type: article
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Cited By Count: 1
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