Diane Costagliola is a researcher, librarian, instructor, and writer who has published articles on personal finance, home buying, and foreclosure. Investopedia / Julie Bang The endowment effect refers ...

The crowding out effect refers to a phenomenon where increased government deficits can lead to a rise in interest rates. This, in turn, can cause activity in the private sector to diminish. The ...

Discover how inflationary psychology influences consumer behavior and market trends. Learn the effects on investments and economic stability in an inflationary environment.

Behavioral economists note that spending increases when asset values rise, known as the wealth effect. Housing asset increases often trigger a stronger wealth effect than stock market surges.