’s consumption growth. The estimates obtained using real after-tax composite return are about 0.15-0.3 and are more robust to linear … and nonlinear estimations, different consumption measures, and various time periods than those obtained by using …

consumption and real GDP. In line with BNW, we find that confidence shocks explain a large share of the variance in real economic … contribution to business cycle fluctuations is reduced, confirming the global dimension of confidence shocks. Overall, our evidence … shows that confidence shocks play some role in business cycle fluctuations. At the same time, we show that confidence shocks …