House price, stock price and consumption in South Africa : a structural VAR approach

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dc.contributor.author Aye, Goodness Chioma
dc.contributor.author Gupta, Rangan
dc.contributor.author Kaninda, N.A. (Nkunda Alain)
dc.contributor.author Nyakabawo, Wendy
dc.contributor.author Razak, Aarifah
dc.date.accessioned 2014-03-31T07:29:44Z
dc.date.available 2014-03-31T07:29:44Z
dc.date.issued 2013
dc.description.abstract This paper compares the effects of real house price and real stock price shocks on consumption decisions in South Africa over the period 1966 to 2012 using a Structural Vector Autoregressive (SVAR) approach.The sample comprises quarterly, seasonally adjusted South African data on consumption, inflation, real house price, real stock price and the nominal Treasury bill rate. We find that a positive 1 percent shock in stock prices leads to about 0.05 percent increase in consumption, with the effect being short-lived, and declines after 4 quarters to become statistically insignificant. While, a 1 percent shock in house prices increase consumption by about 0.3 percent at around the 4th quarter, but thereafter declines and becomes negative from the 8thquarter. These results show that in South Africa, house prices play economically, but not statistically, a greater role than stock prices with respect to consumption expenditure. en_US
dc.description.librarian am2014 en_US
dc.description.uri http://www.virtusinterpress.org/Corporate-Ownership-and-Control,357.html en_US
dc.identifier.citation Aye, GC, Gupta, R, Kaninda, A, Nyakabawo, W & Razak, A 2013, 'House price, stock price and consumption in South Africa : a structural VAR approach', Corporate Ownership & Control, vol. 10, no. 2, pp. 585-590. en_US
dc.identifier.issn 1727-9232 (print)
dc.identifier.issn 1810-3057 (online)
dc.identifier.other 1810-0368 (cd)
dc.identifier.uri http://hdl.handle.net/2263/37221
dc.language.iso en en_US
dc.publisher Virtus Interpress en_US
dc.rights © Virtus Interpress 2013 en_US
dc.subject Consumption en_US
dc.subject House price en_US
dc.subject Stock prices en_US
dc.subject Structural vector autoregression en_US
dc.title House price, stock price and consumption in South Africa : a structural VAR approach en_US
dc.type Article en_US


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