wealth on firm outcomes that corrects for the bias introduced by selection into entrepreneurship. An increase in stock market …We use detailed data on stock portfolios of Norwegian households to show that stock market wealth increases … entrepreneurship activity. Our research design isolates idiosyncratic, quasi-random variation in stock market returns. An increase in …

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 …

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