Preferences over wealth can explain why households do not spend more when real interest rates fall, because they save … more than optimal under a standard model. However, little is known about preferences over wealth empirically. We run an … wealth, consistent with wealth entering the utility function directly. …

The effect of wealth on consumption is an issue of longstanding interest to economists. Analysts believe that … fluctuations in household wealth have driven major swings in economic activity. This paper considers so-called wealth effects - the … impact of changes in wealth on household consumption and the overall macroeconomy. There is an extensive existing literature …

kink allows me to identify how UI affect the use of private wealth to finance consumption during unemployment spells. Using … lacks buffer savings. This is further emphasized for different subpopulations. Women, couples, and older individuals holds … significantly larger liquid wealth than men and young singles. -- Saving ; wealth ; unemployment benefit ; unemployment …