Do wealth shocks affect the health of the elderly in developed countries? The economic literature is skeptical about … experiment that generated considerable gains and losses in the wealth of stock-holding retirees. Using data from the Health and … Retirement Study I construct wealth shocks as the interaction of stock holdings with stock market changes. These constructed …

of a stock market wealth shock when monetary policy is passive. A 20% increase in stock valuations, unless countered by …We provide evidence of the stock market wealth effect on consumption by using a local labor market analysis and … regional heterogeneity in stock market wealth. An increase in local stock wealth driven by aggregate stock prices increases …

How much and over what horizon do households adjust their consumption in response to stock market wealth shocks? We …