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 …

lifetime resources, on the current consumption and wealth accumulation of employees affected by the reform. In line with … and increases the wealth-income ratio by 0.32. The response is stronger for younger workers and for households where both …