Households face earnings risk which is non-normal and varies by age and over the income distribution. We show that … assets. Because households are subject to more background risk than previously considered, the estimated model implies a … substantially lower coefficient of risk aversion. We also find renewed support for rule-of-thumb investment strategies under the …

, they choose to maintain liquid savings - household working capital - not just for precautionary motives but also to support … supports this conclusion. High returns from inventory management that are declining in wealth offer a new rationale for poorer …

, they choose to maintain liquid savings – household working capital – not just for precautionary motives but also to support … supports this conclusion. High returns from inventory management that are declining in wealth offer a new rationale for poorer …

The ratio of consumption to total household wealth (i.e., tangible assets plus unobserved human wealth) is commonly … component in the consumption equation. The consumption-to-wealth ratio calculated from this model is much less persistent than …

This paper estimates rates of return across the gross wealth distribution in eight European countries. Like … differential saving rates, differential rates of return matter for Post Keynesian theory, because they impact the income and wealth … wealth differentiates between three socioeconomic groups: 30% are asset-poor, 65% are middle-class home owners, and the top 5 …

investigates the implications of such estimates for the unobservable aggregate wealth return. Our empirical results indicate that … the estimated relative risk aversion parameter ranges from 17-60, with higher values for aggregate consumption than for … model-implied aggregate wealth return is found to be weakly correlated with the CRSP value-weighted stock market return …