This paper studies the signalling effect of the consumption-wealth ratio (cay) on German stock returns via vector error … wealth growth and U.S. income growth significantly. …

The wealthy hand-to-mouth are households who hold little or no liquid wealth (cash, checking, and savings accounts … hand-to-mouth suggests that these households may have a high marginal propensity to consume out of transitory income …

The wealthy hand-to-mouth are households who hold little or no liquid wealth (cash, checking, and savings accounts … hand-to-mouth suggests that these households may have a high marginal propensity to consume out of transitory income …

aggregate consumption, wealth and asset returns. Our present-value approach decomposes fluctuations in the global consumption-to-wealth … analysis identifies two historical episodes where the consumption-to-wealth ratio declined rapidly below its historical average …