Research On The Impact Of Aggregate Demand Caused By Asset Price

Along with the development of the capital market, financial products are playing more and more important roles in people's lives and the survival of the industries. People pay attention to not only the opportunities of investment and finance which are brought by the price of the financial products, but also the effect on consume and investment. Especially the sub-mortgage crisis swept the world, people began to consider the effect on the real economy, academician has did a lot of research with no agreement on it.Firstly, This paper works over the effect on the national demands caused by the alteration of assets' prices. With the development of the financial market, financial innovations occupy the market. We select three common assets which are the stock, real estate and foreign exchange to analysis the influence of assets'prices. We divide aggregate demands to three parts:consumption, investment and export. We account the consumption according to the social retail goods, considering companies'fixed investment as invest demands.Secondly, This paper researches five mechanisms about consumption demands which are liquidity effect, courage effect, real wealth effect, potential wealth effect and extrusion effect. It considers assets' wealth effect in light of Samuelson basic model and makes some relevant information.Thirdly, Tobin-Q theory is essential in the research of investment demands. This paper offers two types called the basic model and the standard model. Furthermore, it offers B.S. effect and confidence effect. Then we select data about investment, stock market and so on from 1992 to 2007 and establish an equation to study the impact of assets' prices.At last, this paper makes clear two mechanisms to study the export demands. The former does research on the price of export goods which results the change of demands. While, the latter is called fixed substitute elasticity mechanism on the base of ordinal utility theory and adopts utility function and marginal substitute theory to work over the effect of the rate of foreign exchange.