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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...
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We develop a three-country, stock-flow consistent macroeconomic model to study the effects of changes in both personal and functional income distribution on national current account balances. Each country has a household sector and a non-household (corporate) sector. The household sector is...
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Measuring the effect of an unanticipated reduction in tax credits on pension savings, this paper shows that individuals … subsidies for saving in pension accounts only affect total individual savings to a limited extent, but unlike prior research … demonstrate how a sharp reduction in voluntary pension savings is partly offset by increased repayments on mortgage loans. …
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