This paper investigates the effects of wealth on consumer spending in the United States. A traditional life-cycle model … is estimated first. Although it does find a statistically significant wealth effect, its findings are unusable due to the … offered. First, wealth is divided into stock market and non-stock market components, second into liquid and illiquid …

changing the numeraire from units of consumption to units of the consumption process. In terms of the new units, the wealth …

discrete-time solutions are derived, illustrating the following ideas: (i) The price-dividend ratio (such as the wealth …

Although most recent empirical research regarding the size and significance of the impact of changes in wealth on … industrial countries as well. This paper investigates the strength of the wealth effect across countries. Using a variety of … methods, I find evidence of significant wealth effects in the United Kingdom and Canada of a size comparable to that in the …

in some detail the wealth effect in three countries, Canada, Finland, and Italy (Sierminska and Takhtamanova 2007). First …, we investigate whether consumption responds differently to changes in housing and financial wealth. Second, we … investigate whether there are differences in consumption responses to changes in wealth across different age groups. …

wealth distribution. The requirement introduces a positive dependence between the intertemporal elasticity of substitution … and household wealth. This dependence implies a transition phase during which the growth rate of per-capita quantities … rise toward their steady-state values and the distributions of wealth, consumption, and permanent income become more …

between aggregate consumer spending and changes in aggregate household wealth. While stock market gains have surely provided …