concerned about its impact on their wealth; yet, while many households know about inflation eroding nominal assets, most are … beliefs about nominal debt and their own real net wealth. These changes in beliefs causally affect actual consumption and … hypothetical debt decisions. Our findings suggest that real wealth mediates the sensitivity of consumption to inflation once …

Both textbook economics and common sense teach us that the value of household wealth should be related to consumer … suggest. An important first step in understanding the consumption-wealth linkage is determining how closely the two variables … in consumption. This paper provides evidence that a surprisingly small fraction of the variation in household net worth …

wealth accumulation is to finance future consumption, either their own or that of heirs. The paper concludes that the … simplest model that explains the relevant facts is one in which either consumers regard the accumulation of wealth as an end in … itself, or unspent wealth yields a flow of services (such as power or social status) which have the same practical effect on …

This study estimates the magnitude of pension wealth and compares pension wealth to net worth for households in the … 1983 Survey of Consumer Finance (SCF). The SCF is the first data set to provide detailed information on both household … likely to be more accurate than the pension data used in previous studies. Pension wealth was estimated under two sets of …

framework illustrating the numerous channels of the transmission mechanism of surprise inflation to household welfare guides our …

This paper proposes and studies a theory of adaptive consumption behavior under income uncertainty and liquidity … constraints. We assume that consumption is governed by a linear function of wealth, whose coefficients are revised each period by …

The wealthy hand-to-mouth are households who hold little or no liquid wealth (cash, checking, and savings accounts … accounts). We use survey data on household portfolios for the U.S., Canada, Australia, the U.K., Germany, France, Italy, and …

To what extent does household inequality affect the response of aggregate consumption to aggregate real shocks? We … first review two state-of-the-art papers with household heterogeneity and aggregate uncertainty. They teach us that having a … adequately captured by only having a large share of households with no wealth before a recession. We find that, for all of the …

-convex portfolio adjustment costs. The goal is to understand a household's response to income and return shocks. The model includes the … multiple assets, a household can buffer some income fluctuations through the asset without adjustment costs and engage in …