House and stock prices drive household consumption in South Africa.
The article examines how house prices and stock prices in South Africa affect household spending over a long period. By analyzing data from different provinces, the researchers found a strong connection between household income, wealth, and consumption. They discovered that changes in house and stock prices influence how much people spend, with stock market wealth having a bigger impact than housing wealth. The study also showed that the relationship between wealth and consumption goes both ways in the long term, but only one way in the short term.