scholarly journals WILL THE HOUSING WEALTH EFFECT COMPENSATE THE MACRO-ECONOMY? EVIDENCE FROM TAIWAN’S DOMESTIC CONSUMPTION

2020 ◽  
Vol 24 (3) ◽  
pp. 197-214
Author(s):  
Hong-Jhong Cheng ◽  
Nan-Yu Wang ◽  
Chien-Wen Peng ◽  
Chih-Jen Huang
Keyword(s):  
Durable Goods ◽  
Positive Relationship ◽  
Negative Impact ◽  
Housing Prices ◽  
Wealth Effect ◽  
Housing Wealth ◽  
Dynamic Adjustment ◽  
Domestic Consumption ◽  
Significant Positive Relationship ◽  
Housing Wealth Effect

This paper examines the relationship between the escalation in housing prices and categories of Taiwan’s domestic consumption. While disposable income remains constant, a rapid escalation in housing prices should have a negative impact on unaffordability within society. However, under the hypothesis of the housing wealth effect, an increase in housing values should compensate the macro-economy by increasing consumption in the GDP calculation. Taiwanese data from 2007Q1 to 2018Q1 were adopted as the sample. From the vector error correction model results, it was found that over the course of the long-run equilibrium relationship, there was a statistically significant positive relationship that the society consumes more on durable goods of communication-related nature, as well as on non-durable goods such as personal clothing and accessories and leisure/cultural tourism. As for the short-run dynamic adjustment, there was a statistically significant positive relationship that the society consumes more in the durable goods component categories. It was identified that transportationrelated consumption accounted for the major part of the durable goods component. Therefore, with the rapid escalation in housing prices, it was observed that these consumption would compensate the consumption figures in the GDP calculation in Taiwan, thereby providing evidence that housing prices were related to macroeconomic performance.

scholarly journals Saving Behavior and Housing Wealth Evidence from German Micro Data

2018 ◽  
Vol 238 (6) ◽  
pp. 501-539
Author(s):  
Sören Gröbel ◽  
Dorothee Ihle
Keyword(s):  
House Prices ◽  
House Price ◽  
Wealth Effect ◽  
Housing Wealth ◽  
Price Shocks ◽  
Household Level ◽  
Underlying Causes ◽  
Saving Behavior ◽  
Housing Wealth Effect ◽  
Important Position

Abstract Housing property is the most important position in a household’s wealth portfolio. Even though there is strong evidence that house price cycles and saving patterns behave synchronously, the underlying causes remain controversial. The present paper examines if there is a wealth effect of house prices on savings using household-level panel data from the German Socio-Economic Panel for the period 1996-2012. We find that young homeowners decrease their savings in response to unanticipated house price shocks, whereas old households hardly respond to house price changes. Although effects are relatively low in magnitude, we interpret this as evidence of a housing wealth effect.

The Search for Broad Environmental Information and New Product Development Success in Technology-Based SMEs

2014 ◽  
Vol 22 (01) ◽  
pp. 27-55 ◽  
Author(s):  
So-Jin Yoo ◽  
Olukemi Sawyerr
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Positive Relationship ◽  
Information Sources ◽  
Negative Impact ◽  
New Product ◽  
Environmental Scanning ◽  
Sources Of Information ◽  
Significant Positive Relationship ◽  
Internal Sources

In this study we examined the relationships between environmental scanning and information sources on new product development (NPD) success in a sample of 112 Korean technology-based SMEs. We found a significant positive relationship between scanning the task sectors of the environment of customers, competitors and technology on the timeliness and creativity of the NPD process. We also found that external personal sources of customers, competitors and suppliers/distributors and internal sources of employees, company library, etc. had a significant positive relationship with NPD success, while the use of professional sources of information such as lawyers, bankers and trade and industry association members had a negative impact on NPD success. We discuss the findings and their implications.

More wealth, less leisure? Effect of housing wealth on tourism expenditure in China

2018 ◽  
Vol 24 (5) ◽  
pp. 526-540 ◽  
Author(s):  
Chuanyong Zhang ◽  
Guoliang Feng
Keyword(s):  
Durable Goods ◽  
House Prices ◽  
Wealth Effect ◽  
Income Effect ◽  
Crowding Out ◽  
Housing Wealth ◽  
Educational Training ◽  
Tourism Expenditure ◽  
Using Data ◽  
Shed Light

Elastic consumption is determined by both the income and wealth effect. However, few studies shed light into the effect of illiquid wealth. In this study, we explore this question by examining the effect of housing wealth on one particular consumption of high elastic, tourism expenditure, in China. By using data from China Family Panel Studies in 2010 and 2012, we find that the change in house prices has a positive and significant effect on tourism expenditure. Particularly, by controlling the income effect, we find that for every 1% increase in house prices, tourism expenditure grew by 0.4%. Moreover, we investigate the crowding out effect of mortgage payments and find that the change in the wealth of households with mortgages has a positive but not significant effect on tourism expenditure. We also note that tourism expenditure does not affect the expenditure on necessities or durable goods, but indeed crowds out expenditure on educational training and other high elastic goods.

scholarly journals A Dynamic Model of Housing Wealth Effect: Based on the Diversity of Wealth Expectations

2014 ◽  
Vol 2 (1) ◽  
pp. 47-53
Author(s):  
Danxiao Jiao ◽  
Di Wu ◽  
Xiuting Li ◽  
Jichang Dong ◽  
Desheng Dash Wu
Keyword(s):  
Dynamic Model ◽  
Empirical Test ◽  
Wealth Effect ◽  
Housing Wealth ◽  
Consumption Function ◽  
Effect Model ◽  
Poor Group ◽  
Housing Wealth Effect ◽  
The Rich ◽  
The Relationship

AbstractConsidering the dynamics and diversity of wealth expectations, this paper follows and extends Hall’s consumption function to establish a new dynamic model of housing wealth effect. People are classified into the rich group and the poor group and a housing wealth effect model is made for each group to explore the relationship between housing wealth effect and social inequality. We get three interesting conclusions which are helpful for further empirical test apart from the former deviation or fallacy.

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