RE: "Stock Market and the Real Economy"

[Mason Clark <masonc@xxxxxxxxxxxxx>]

At 11:12 AM 3/14/00 -0500, you wrote:
>I would like to break into this discussion by noting that none of the
>empirical evidence so far has found any significant real effect of
>rising stock market prices--whether through investment spending or the
>wealth effect on consumption.
>
>Lonnie K. Stevans
>acslks@xxxxxxxxxxx
>
  Surely, the ability of entrepreneurs to raise copious quantities
  of money is aided and abetted by the high stock market prices.
  Also, the ability of new companies (dot.coms) to acquire old
  companies (AOL-Times/Warner) is possible because of high,
  and perhaps distorted, stock prices.

  And my friends and I are admitting to spending more freely because
  our stocks held directly and indirectly make our net worth higher,
  even if a temporary illusion.

  How did someone look for that "empirical evidence"?

         Mason Clark