Date of Award
1997
Document Type
Thesis
Publication Status
Version of Record
Submission Date
October 2026
Thesis/Dissertation Advisor [Chair]
Yuhn, Ky-Hyang
Abstract
This thesis examines the significance of the real interest rate and stock prices as explanatory variables in the aggregate consumption function. This study applies the methodologies of OLS regression analysis and tests of cointegration to examine the relationship between stock prices and consumption. The empirical results suggest that stock prices are a significant factor in the modified aggregate consumption function. Consumers, perceiving stock prices to be an indicator of their wealth, are making more expenditures on durable goods as they perceive increases in stock values to be permanent. Finally, the results of the tests for cointegration suggest that there is no long-run equilibrium relationship between stock prices and consumption.
Extent
90 p.
Recommended Citation
Kinney, Timothy P., "Stock prices and consumption: A new variable in the consumption function?" (1997). Electronic Theses and Dissertations 1990 - 1999. 1237.
https://digitalcommons.fau.edu/etd_general_4/1237
Identifier
FADT15504
Comments
College of Business|Thesis (M.A.)--Florida Atlantic University, 1997.|FAU Electronic Theses and Dissertations Collection|College of Business