components, modest changes in consumption expenditures, and large changes in wealth. We then split the sample in households which … do not own business or real estate wealth, and households who do. For the first group, we find that consumption responses … income shocks can explain well the consumption and wealth responses, both at short and long horizons. For the second group …

the top, while the cyclical component of inequality dominates dynamics below the median. Inequality in consumption … downturn in fifty years in which inequality in disposable income and consumption actually declined …