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 …

accumulation, as well as on the income and wealth distribution in a two sector heterogeneous agent general equilibrium model … likelihood of entrepreneurship increases with individual wealth. -- DSGE model ; wealth distribution ; occupational choice …

likely to increase due to a non-persistent government spending shock. Furthermore, the group of asset-holding households …