The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Wealth Effect

  • Michael R. Darby
Reference work entry


Wealth is ubiquitous in economic analysis; so it is not surprising that the term ‘the wealth effect’ has been used by different authors and even the same author to refer to many distinct concepts. This brief entry is concerned with only the wealth effect in terms of aggregate consumption. Even in this limited field several distinct usages must be considered.

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Michael R. Darby
    • 1
  1. 1.