Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/302235 
Year of Publication: 
2024
Series/Report no.: 
ISER Discussion Paper No. 1241
Publisher: 
Osaka University, Institute of Social and Economic Research (ISER), Osaka
Abstract: 
This study theoretically considers household behavior with wealth preference and empirically investigates the validity of insatiable wealth preference using a nationally representative survey. With wealth preference, the marginal rate of substitution of asset holdings for consumption depends on the nominal interest rates of assets at each point in time. We focus on this property and find that the marginal utility of holding financial assets remains strictly positive as asset holdings increase and has a strictly positive lower bound, implying the insatiability of wealth preference. This property plays a crucial role in creating secular demand stagnation and expanding asset price bubbles.
Subjects: 
wealth preference
survey data
secular stagnation
bubbles
JEL: 
D12
E21
E43
E71
Document Type: 
Working Paper

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