correlate with household net wealth (or income). Bond price increases thus leave net wealth inequality largely unchanged. In … contrast, equity price increases largely benefit the top end of the net wealth (and income) distribution, thus amplify net … households using data from the Household Finance and Consumption Survey (HFCS). The capital gains from bond price and equity …

We present evidence that shocks to household consumption growth are negatively skewed, persistent, countercyclical, and … state variable drives the conditional cross-sectional moments of household consumption growth. The estimated model fits well … the unconditional cross-sectional moments of household consumption growth and the moments of the risk free rate, equity …

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 …