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 …

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 … future income. Based on analysis of household-level data from the Consumer Expenditure Survey, we find that direct wealth …