The effect of wealth on consumption is an issue of longstanding interest to economists. Analysts believe that … impact of changes in wealth on household consumption and the overall macroeconomy. There is an extensive existing literature …

How sizable is the wealth effect on consumption in euro area countries? To address this question, we use newly …

We study an Agent-based model of household-bank relationships where households borrow for the purpose of consumption …. Desired consumption is driven by households disposable income as well as a social norm of consumption. If households care … conduct several computational experiments, where the absence of the social consumption norm (Joneses effect) functions as …

Much of the literature on the effect of housing wealth on consumption has been embedded in a simple life-cycle model in … changes in consumption. However, this might constitute a fallacy of composition. Such models ignore that changes in housing … the classic Ando-Modigliani consumption function augmented by housing wealth can be deduced. It is shown that the deeper …

stagnation of household consumption during the 1990s and find that the stagnation of household disposable income, the decline in …

We study an Agent-based model of household-bank relationships where households borrow for the purpose of consumption …. Desired consumption is driven by households disposable income as well as a social norm of consumption. If households care … conduct several computational experiments, where the absence of the social consumption norm (Joneses effect) functions as …

consumption across states of nature, one must also consider the assets;́ effects on households;́ ability to smooth consumption … returns correlate negatively with income shocks) even though the assets offer identical opportunities to smooth consumption … be substantial (above 1 percent of certainty-equivalent consumption), the assets we consider can only mitigate a …

effect of wealth shocks on household consumption and individual expectations of the future. Many household experienced a …