Wealth effect

The wealth effect is the change in spending that accompanies a change in perceived wealth.[1] Usually the wealth effect is positive: spending changes in the same direction as perceived wealth.

  1. ^ • Darby, Michael R. (1987). "wealth effect," The New Palgrave: A Dictionary of Economics, v. 4, pp. 883–4.
       • Jelveh, Zubin. "In Praise of the Wealth Effect – Economics Blog – Zubin Jelveh – Odd Numbers – Portfolio.com". portfolio.com. Retrieved 2009-04-20.