RE: "Stock Market and the Real Economy"

["Per Gunnar Berglund" <BergP867@xxxxxxxxxxxxx>]

Basil and Rogerio,

I haven't had time to update my FoF database after the revisions of the
NIPAs in the Fall, but all of it can be downloaded from the Fed Board of
Governor's website (in rather undeciperable files, however -- there's a
lot of work involved in unpacking them!).

Best,
Per


>>> "Rogerio Studart" <studart@xxxxxxxxxx> 03/31 6:49 AM >>>
Dear Basil,

I read your message to Per, and was very much interested in the
statistics you mention. Do you have it with you ?

Best regards,

Rogerio


On 29 Mar 00, at 21:29, Basil Moore wrote:

Per
I was disappointed that I could not find you at the Easterns? I did
keep a
look out for you.
Did you come?
This statistic below, capital gains greater than the wage bill, is
really
astonishing. The situation must be similar or perhaps even more
extreme in
the States? (I read somewhere that the wealth of the three richest
billionaires in the US was greater than that of the smallest and
poorest 50
countries!)
Have you tried to calculate the total capital gains on stocks for the
US
using the Flow of Funds accounts?
I intend to look it up as soon as I can break free from classwork.

I am still mulling over your earlier email,

Best Basil Moore
At 03:06 PM 3/17/00 -0500, you wrote:
>Basil,
>
>Since all stocks are available in the Flow of Funds accounts, you can
>easily calculate the Haig-Simons-Lindahl income (Yh) by taking first
>differences of households' wealth (Vh) and adding private consumption
>(Ch):
>
>Yh = Vh(1) - Vh(0) + C(h),
>
>where (1) and (0) indicate opening and closing balances,
respectively.
>
>
>(As a curiosum, I might add that in 1999, the holding gains on equity
>alone in my beloved home country Sweden, exceeded the whole of the
>pre-tax wage bill. It would be interesting to see how a Gini
coefficient
>based on the Haig-Simons-Lindahl income concept would turn out...)
>
>Cheers,
>Per
>
>Per Gunnar Berglund
>
>
>>>> Basil Moore <bmoore@xxxxxxxxxxxxxxxxx> 03/16 11:27 AM >>>
>Lonnie or anyone else
>does anyone know if there been an official effort, by the BEA or any
>other
>agency, eg the Fed. to publish a broader Disposable Income series,
>including capital gain income from asset revaluations?  For such a
>series
>unrealized capital gains would appear as "Saving".
>Basil Moore
>
>At 09:53 PM 3/14/00 -0800, you wrote:
>>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
>>
>