wealth in the euro area that have been triggered by the low-interest environment. The first debate refers to the development … of real yields on household wealth from 2000 to 2018, whereas the second debate deals with the mean-variance efficiency … of household portfolios. Contrary to widespread belief, we find that yields on total wealth, which were largely dominated …

The ratio of consumption to total household wealth (i.e., tangible assets plus unobserved human wealth) is commonly … component in the consumption equation. The consumption-to-wealth ratio calculated from this model is much less persistent than …