In this paper we study the role of household portfolio rebalancing channel for the aggregate and redistributive effects … subsequent wealth effect on consumption. In order to jointly study these effects, we introduce an heterogeneous household life … reduction in expected return on household portfolio. However, the strength of these two forces notably varies depending on …

that low-risk stocks outperform high-risk stocks. Using a large-scale household dataset, we provide an explanation for this …

United States, reflecting the importance of equities in aggregate household wealth in these countries. A significant wealth … effect is also evident in Japan, but because household wealth has changed little on balance in Japan in recent years, this … remain a less important form of household wealth in most of these countries, and the consumption response to changes in …

policy uncertainty affects household consumption and stock prices. The model implies that the government should avoid policy …