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The Relationship between the Stock Market and Consumption
Author(s) -
Alghalith Moawia,
Polius Tracy
Publication year - 2013
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/1759-3441.12018
Subject(s) - econometrics , economics , consumption (sociology) , stock market , basis (linear algebra) , stock (firearms) , simple (philosophy) , empirical research , financial economics , mathematics , statistics , social science , philosophy , geometry , epistemology , sociology , mechanical engineering , paleontology , horse , engineering , biology
This paper examines the interaction between consumption and the price/return of stocks. In so doing, we utilise an advanced theoretical and empirical framework. It is worth noting that previous literature used simple linear regressions without a rigorous theoretical basis. Consequently, we present a sophisticated non‐linear dynamic model as the theoretical basis of our empirical results.