financial behavior. We find that private consumption is excessively sensitive to dividend income. Investors across wealth …

expected investment whenever the return on equity is large enough. We label this prediction the wealth creation effect. The … returns controlling for the usual characteristics. A wealth creation factor earns a premium of about 24bps per month leading …

market wealth affect worker output. Exploiting large return variations over time and across investors, we document a 10 … idiosyncratic stock investment returns, and moreover is unexplained by investor-specific liquidity needs. Consistent with the wealth …

This paper investigates the effects of stock market wealth on consumer spending. Traditional macroeconometric models … estimate that a dollar's increase in stock market wealth boosts consumer spending by 3-7 cents per year. With the substantial … 1990s rise in stock prices, the nature and magnitude of this "wealth effect" have been much debated. After describing the …

We use detailed data on stock portfolios of Norwegian households to show that stock market wealth increases … stock market wealth increases the propensity to start a firm, with the response concentrated in households with moderate … levels of financial wealth, for whom a 20 percent increase in stock wealth increases the likelihood to start a firm by about …