wealth and investment in health. Financial literacy is also correlated with wealth though it appears to be a weaker predictor …

rises in wealth in the cross-section of households in the Survey of Consumer Finances. For a given household, the portfolio … share can fall in response to an increase in wealth, even though the model implies decreasing relative risk aversion …

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 …

aggregate consumption. The price-dividend ratio of this claim is the wealth-consumption ratio. Our estimates indicate that total … wealth is much safer than stock market wealth. The consumption risk premium is only 2.2 percent, substantially below the … equity risk premium of 6.9 percent. As a result, the average US household has more wealth than one might think; most of it is …

of wealth. We distinguish between passive traders who hold fixed portfolios of stocks and bonds, and active traders who … separately. We show that the fraction of total wealth held by active traders, not the fraction held by all participants, is … and the risk-free rate. The calibrated model reproduces the skewness and kurtosis of the wealth distribution in the data …

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 …

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 … relative importance of permanent and transitory innovations in the variation of consumer spending and wealth and find that …

We estimate the causal effect of wealth on stock market participation using administrative data on Swedish lottery … intuitive ways. Standard lifecycle models predict wealth effects far too large to match our causal estimates under common …