about the chinese stock market could increase consumer surplus thinking（关于中国股市可能会增加消费者剩余的思考）.docVIP

About the Chinese stock market could increase consumer surplus Thinking Abstract: January 1992 - December 2009 the Chinese urban residents’ consumption and disposable income, and the Shanghai Composite Index monthly data, the use of co-integration test, error correction model, Granger causality test and impulse response function analysis methods for empirical research, draw the actual balance effect occurs stock steering, stock price index rose makes spending reductions. Consumption and disposable income of urban residents into a positive relationship. Through Granger causality test results, both in the short and long term, the rise in the stock price index growth of total household consumption is not Granger cause the increase in disposable income of residents is the increased consumption Granger causes. Keywords: stock market surpluses; consumption; actual balance effect I. Introduction ‘Actual balance’ comes from Marshall’s ‘alternate purchasing power’ concept. Because people spending needs, as part of the wealth or income in the form of money saved, this is money balances. Real money balances, net balance of the price level affect the real value after. Patinkin actual balance effect is the core of monetary theory, refers to the commodity market prices caused by changes in the level of real money balances, changes in the value of the impact on consumer titles of papers. [1] With the development of financial markets and asset diversification, meaning the actual balance effect also will be extended. On the stock market, the actual balance effect refers to changes in stock price stockholders changes in real money balances effect on consumption. Specifically, the stock prices led to the stock holders in real money balances increase, thereby increasing consumption, and vice versa to reduce consumption. The former may be called the stock market is the actual balance effect, which is known as the stock market’s negative real balance effect.