The purpose of this paper is to examine whether the stock wealth effect of consumption exhibits structural change(s) or behaves asymmetrically over business cycles. We first perform a general test of linearity for the behavior of aggregate consumption in response to changes in stock wealth based...

This paper takes a preliminary step towards understanding the dynamics of property prices and their interaction with output growth. Our general equilibrium model is able to generate closed form solutions and testable hypotheses that are broadly supported empirically. In particular, our data...