The study seeks to examine stock market wealth effects on private non-durable consumption for Zimbabwean households … relationship between stock market wealth and consumption. An autoregressive distributed lag model (ARDL) analysis is implemented to … shows a speedy convergence to long run equilibrium. -- wealth effects ; consumption dynamics ; income effect ; convergence …

This paper quantifies the welfare cost of consumption externalities in an endogenous growth model with habit formation …. Agent’s utility depends on both current consumption and a reference consumption level determined by economy-wide average … past consumption. Although utility may be lower in the presence of consumption externalities, the welfare loss relative to …