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Article: The Spirit of Capitalism and Stock-Market Prices
| Title | The Spirit of Capitalism and Stock-Market Prices |
|---|---|
| Authors | |
| Issue Date | 1996 |
| Citation | American Economic Review, 1996, v. 86, n. 1, p. 133-157 How to Cite? |
| Abstract | In existing theory, wealth is no more valuable than its implied consumption rewards. In reality investors acquire wealth not just for its implied consumption, but for the resulting social status. Max M. Weber refers to this desire for wealth as the spirit of capitalism. We examine, both analytically and empirically, implications of Weber's hypothesis for consumption, savings, and stock prices. When investors care about relative social status, propensity to consume and risk-taking behavior will depend on social standards, and stock prices will be volatile. The spirit of capitalism seems to be a driving force behind stock-market volatility and economic growth. |
| Persistent Identifier | http://hdl.handle.net/10722/212671 |
| ISSN | 2023 Impact Factor: 10.5 2023 SCImago Journal Rankings: 22.344 |
| DC Field | Value | Language |
|---|---|---|
| dc.contributor.author | Bakshi, Gurdip S. | - |
| dc.contributor.author | Chen, Zhiwu | - |
| dc.date.accessioned | 2015-07-28T04:04:38Z | - |
| dc.date.available | 2015-07-28T04:04:38Z | - |
| dc.date.issued | 1996 | - |
| dc.identifier.citation | American Economic Review, 1996, v. 86, n. 1, p. 133-157 | - |
| dc.identifier.issn | 0002-8282 | - |
| dc.identifier.uri | http://hdl.handle.net/10722/212671 | - |
| dc.description.abstract | In existing theory, wealth is no more valuable than its implied consumption rewards. In reality investors acquire wealth not just for its implied consumption, but for the resulting social status. Max M. Weber refers to this desire for wealth as the spirit of capitalism. We examine, both analytically and empirically, implications of Weber's hypothesis for consumption, savings, and stock prices. When investors care about relative social status, propensity to consume and risk-taking behavior will depend on social standards, and stock prices will be volatile. The spirit of capitalism seems to be a driving force behind stock-market volatility and economic growth. | - |
| dc.language | eng | - |
| dc.relation.ispartof | American Economic Review | - |
| dc.title | The Spirit of Capitalism and Stock-Market Prices | - |
| dc.type | Article | - |
| dc.description.nature | link_to_subscribed_fulltext | - |
| dc.identifier.scopus | eid_2-s2.0-0029799404 | - |
| dc.identifier.volume | 86 | - |
| dc.identifier.issue | 1 | - |
| dc.identifier.spage | 133 | - |
| dc.identifier.epage | 157 | - |
| dc.identifier.issnl | 0002-8282 | - |