Based on the cointegrating relationship between consumption and wealth, we estimate the long run consumption-to-wealth ratio for each of five consumer income quintiles as well as national data for benchmarking purposes. Short run deviations from the consumption-to-wealth ratio for each quintile...

This paper tests the consumption-based capital asset model within the context of the spirit of capitalism. The spirit of capitalism asserts that consumers gain utility not just from consumption of goods and services, but also from the social status obtained from wealth. We examine two asset...

Like many industrial nations over the last four decades, the Japanese economy has undergone a number of regime shifts, making parameter estimations difficult. One of the most significant shifts occurred in inflation in the mid 1970s as OPEC suddenly raised oil prices. This abrupt change likely...