formueeffekt
Formueeffekt, or wealth effect, refers to the change in household consumption and spending that results from a change in perceived or actual wealth. It occurs when asset prices rise or fall—most notably housing and financial assets such as stocks—altering households’ balance sheets without a corresponding change in current disposable income. The effect is a mechanism through which asset markets influence macroeconomic demand.
Mechanisms include a direct wealth channel, where higher wealth boosts confidence and encourages more spending on
Empirical evidence shows that the size of the wealth effect varies by country, by the composition of
Policy relevance lies in recognizing asset prices as part of the macroeconomic transmission mechanism. Central banks