So... this post introduces a new "fact" then debunks its own headline, using a phenomenon already well known to economists: the wealth effect[1]. This feels less like an economics blog and more like a social media Rorschach test -- do you read the article, and its footnotes, or just respond to headlines?
The wealth affect literature is skimpy and not very good, and heck, the Keynesian consumption function that pretty much every model uses doesn’t even have a wealth term.
Comments
So... this post introduces a new "fact" then debunks its own headline, using a phenomenon already well known to economists: the wealth effect[1]. This feels less like an economics blog and more like a social media Rorschach test -- do you read the article, and its footnotes, or just respond to headlines?
[1]: https://en.wikipedia.org/wiki/Wealth_effect
The wealth affect literature is skimpy and not very good, and heck, the Keynesian consumption function that pretty much every model uses doesn’t even have a wealth term.