This paper analyzes the existence of 'wealth effects' derived from net equity (in the form of housing, financial assets, and total net worth) on consumption. The study uses longitudinal household-level data -- from the Panel Study of Income Dynamics (PSID) -- covering about 7,000-9,000...

The paper uses a combination of micro-level datasets to document the rise of income polarization - what some have referred to as the 'hollowing out' of the income distribution - in the United States, since the 1970s. While in the initial decades more middle-income households moved up, rather...