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

dynamics. When the model is modified in a way that permits it to match empirical measures of wealth inequality in the U.S., we … how the shock is distributed across categories of households (e.g., low-wealth versus high-wealth households) …

increasing housing wealth over one year to be around 4-6 per cent. Younger and more levered households have a larger MPC out of … housing wealth, suggesting that collateral effects may play a role. The MPC is asymmetric; households adjust their consumption … more in response to negative housing wealth shocks than to positive. Finally, we simulate an increase in interest rates at …

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. …

prediction of the wealth effect, individuals increase their entertainment-related consumption after experiencing large positive … that our results are not driven by income effects or wealth shock measurement errors …