@techreport{Forster2005Stock,
abstract = {Since the mid-1990s, large movements in stock prices have not only raised central
bankers' and policy-makers' interest in their implications for real economic activity,
but have also led to extensive empirical research in this field. While most of the
studies have focussed on the United States or the euro area as a whole, this paper
is one of the few providing empirical evidence for Germany.
Despite the fact that the significance of equity markets remains much smaller in
Germany than in other industrial countries, the empirical analysis confirms that
stock price movements are relevant for the German economy: overall, stock price
movements have had an impact on both domestic consumption and domestic
private investment in recent years. Less surprisingly, the effects prove to be of
much less significance than for other countries, in particular the United States,
where stock market effects have been substantial.
However, as it can be expected that the equity markets will gain further importance
in Germany in the long term \textendash{} e.g. in connection with the need for households to
increase privately funded pensions and for many German companies to
strengthen their equity and diversify their financing resources \textendash{} the paper also
concludes that the real economy will register more significant effects in future.},
author = {Katrin Forster},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {330; B\"{o}rsenkurs; Makro\"{o}konomischer Einflu\ss{}; Konjunktur; Sch\"{a}tzung; Deutschland},
language = {eng},
number = {20},
title = {Stock Prices and Real Economic Activity Empirical Results for Germany},
type = {Research notes working paper series},
url = {http://hdl.handle.net/10419/21882},
year = {2005}
}
