wealth effect · spending
Ask PrometheusMembers of a collective self buying more when the value of what they own rises, though they sell nothing, because they read their reach as larger.
Wealth effect (noun) means: Members of a collective self buying more when the value of what they own rises, though they sell nothing, because they read their reach as larger. It emerges from collective self, reach, self-model, member: A rise in held value widens the self-read of reach without widening any window that can be spent; members act on the read, so spending follows a number that was never turned into money. In the EmergenceLexicon it sits at computed level 18, chaining down to the four foundations (space, time, energy, pattern).
Examples
- Economists estimate the wealth effect as the change in household spending per dollar change in wealth, with many estimates of a few cents per dollar. economics
Emergence
- spending from a reading, not a receipt
- reach widened on paper and used in fact
Chain to foundations
full chain as text (427 steps)
- wealth effectL18
- collective selfL15
- self-modelL14
- memberL7
- groupsL5
- modelL9
- keepL5
- acrossL13
- readL7
- subjectL5
- reachL13
- self-modelL14
- memberL7
- buyL9
- valueL7
- riseL3
- sellL17
- nothingL10
- readL7
- largeL3
- collective selfL15
Neighborhood
Concepts that depend on this one above; what it is built from below.
Relations
| contrasts-with | wealth.range | wealth is the range itself; the wealth effect is acting on its read value |
| contrasts-with | consumer-confidence.measured | confidence is the asked self-read; the wealth effect is spending moved by held value |