deviations from the common trend among consumption, aggregate wealth, and labour income, cay, and focus on the implications for … future stock returns to be higher, they will temporarily allow consumption to rise. Regarding housing returns, if housing … substitutes consumption will be temporarily reduced. …

consumption, aggregate wealth, and labour income should predict both stock returns and housing returns. We use quarterly data for … temporarily allow consumption to rise. Regarding housing returns, if housing assets are complementary to stocks, then investors … their consumption. …

In this paper, I assess the forecasting power of the residuals of the trend relationship among consumption, aggregate … stock returns are expected to be higher in the future, forward-looking investors will temporarily allow consumption to rise … of public finances, then they will let consumption fall temporarily below its equilibrium level. …

of the long-run aggregate consumption function. The dating of the regimes appears to bear relation to movements in asset … consumption, income and wealth in explaining the estimated long-run coefficients. …

the dynamics of real economic activity, namely, of private consumption. In this work, the role of stock market as a … determinant of private consumption is analyzed, namely, by the consideration of wealth effects. It is also analyzed the potential …-run dynamics is analyzed with the estimation of a single equation, suggesting that consumption contemporaneously answers to changes …

This paper argues that nonlinear adjustment may provide a better explanation of °uctuations in the consumption … markets. In fact, estimation of the system suggests that short-term deviations in the consumption-wealth ratio will forecast … either asset returns or consumption growth: the ¯rst when changes in wealth are transitory; the second when changes in wealth …

trend relationship among consumption, aggregate wealth, and labour income, cay, and three major sources of risk: future … changes in the housing consumption share, cr, future labour income growth, lr, and future consumption growth, lrc. Using a VAR …

In this work, I analyze the response of consumption and asset returns to unexpected wealth variation. Using data at … consumption, financial wealth shocks only have transitory effects; and (ii) similarly, unexpected variation in housing wealth …

This paper estimates the wealth effects on consumption in the euro area as a whole. I show that: (i) financial wealth …; (iii) consumption growth exhibits strong persistence and responds sluggishly to shocks; and (iv) the immediate response of … consumption to wealth is substantially different from the long-run wealth effects. By disaggregating financial wealth into its …

This paper assesses the importance of nonlinearity in estimating the wealth effects on consumption for the US, the UK … financial wealth effects with housing wealth effects. We also assess the magnitude of the response of consumption using both a … elasticity of consumption with respect to aggregate wealth is largest for the UK and housing wealth effects do not seem to be …