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Social and Behavioral Sciences Commons™
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Full-Text Articles in Social and Behavioral Sciences
Money Buys Financial Security And Psychological Need Satisfaction: Testing Need Theory In Affluence, Ryan T. Howell, Mark Kurai, Wing Yin Leona Tam
Money Buys Financial Security And Psychological Need Satisfaction: Testing Need Theory In Affluence, Ryan T. Howell, Mark Kurai, Wing Yin Leona Tam
Faculty of Commerce - Papers (Archive)
The most prominent theory to explain the curvilinear relationship between income and subjective well-being (SWB) is need theory, which proposes that increased income and wealth can lead to increased well-being in poverty because money is used to satisfy basic physiological needs. The present study tests the tenets of need theory by proposing that money can buy happiness beyond poverty if the money satisfies higher-order needs. Findings indicate that in older adults (n = 1,284), as economic standing rises, so do individual perceptions of financial security (a safety need), which in turn increases overall life satisfaction. Further, a path model tested …
Interest Rate Pass Through And The Asymmetric Relationship Between The Cash Rate And The Mortgage Rate, Abbas Valadkhani, Sajid Anwar
Interest Rate Pass Through And The Asymmetric Relationship Between The Cash Rate And The Mortgage Rate, Abbas Valadkhani, Sajid Anwar
Faculty of Commerce - Papers (Archive)
There is an ongoing controversy over whether banks’ mortgage rates rise more rapidly than they fall due to their asymmetric responses to changes in the cash rate. This paper examines the dynamic interplay between the cash rate and the standardvariable mortgage rate using monthly data in the post-1989 era. Unlike previous Australian studies, our proposed threshold and asymmetric error-correction models account for both the amount and adjustment asymmetries. We found that the Reserve Bank of Australia’s rate rises have a much larger and more instantaneous impact on the mortgage rate than rate cuts.