changes in wealth. In the cross section, we find that wealthier investors are more risk averse. Using changes in house prices … as a source of variation, we find that investors become more risk averse after a negative wealth shock. These preferences …

We use data from the PSID to investigate how households' portfolio allocations change in response to wealth … consequence that when the level of liquid wealth changes, the proportion a household invests in risky assets should also change in … is not affected by wealth changes. Instead, one of the major drivers of households' portfolio allocation seems to be …

A fall in house prices due to a change in fundamental value redistributes wealth from those long housing (for whom the … is no pure wealth effect on consumption from a change in house prices if this represents a change in fundamental value …. There is a pure wealth effect on consumption from a change in house prices if this reflects a change in the speculative …

seriously adverse outcomes. If the composition of wealth shifts into the hands of investors with higher coefficients of relative … calculates likely magnitudes of the decline and presents evidence in favor of a shift in the composition of wealth toward the …

slightly with her elasticity of intertemporal substitution; by contrast, optimal consumption relative to wealth depends on both …

Value stocks covary with aggregate consumption more than growth stocks during periods when financial wealth is low … consumption-based model augmented with an aggregate wealth growth factor, which can be motivated by either recursive preferences … or relative wealth concerns …