log consumption, assets, and labor income will be cointegrated. They conclude that this cointegrating relationship is …, assets, and labor income that are jointly consistent with an underlying budget constraint. By contrast, Lettau and Ludvigson …

Several U.S. panel surveys measure household wealth. At the same time, many important questions about household wealth … hinders their usefulness for addressing these questions. We review the features of wealth data that make it difficult to …

distribution of wealth in a standard Aiyagari model (i.e. a model with heterogeneous agents, idiosyncratic uncertainty, and … are not adjusted in response to changes in income, increasing, on average, the volatility of non-durable consumption. The … costs. Transaction costs have only a modest impact on the degree of wealth dispersion, as measured by the Gini index, as the …

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 …

wealth. Consensus estimates of this wealth effect are in the range of 3 to 5 cents of additional consumption spending in the … long run for each additional dollar of wealth. Economic theory also suggests that consumption of leisure, like consumption … of goods and services, should increase with positive shocks to wealth. In this paper, we ask whether the run-up in equity …

among aggregate data on household consumption, income, and wealth. In particular, we focus on studies determining whether … shared by consumption, income, and wealth over the long run, then deviations of these series from their commong long- run … describing the magnitude of the wealth effect on consumption--and even broad conclusions about its existence--are affected by …

correlation between wealth and the saving rate over a longer time span. In this paper, we combine household-level data from the …, econometric analysis of these data produces propensities to consume out of wealth in the range of typical estimates obtained from … aggregate data. Taken together, our results corroborate a direct view of the wealth effect on consumption. …

future income. Based on analysis of household-level data from the Consumer Expenditure Survey, we find that direct wealth …This paper explores the household behavior that underlies the link between wealth and consumption at the aggregate … level. One possibility is that changes in wealth directly cause changes in consumption through their effect on households …