The ratio of consumption to total household wealth (i.e., tangible assets plus unobserved human wealth) is commonly … financial liberalization which, by relaxing liquidity constraints of consumers, has permanently increased the consumption-to-wealth … ratio over the sample period. We calculate an alternative "cay" variable, i.e., the stationary part of the consumption-to-wealth …

In a recent paper (quot;A Primer on the Economics and Time Series Econometrics of Wealth Effects,quot; 2001), Davis and … Palumbo investigate the empirical relation between three cointegrated variables: aggregate consumption, asset wealth, and … changes in income and wealth? Is the adjustment rapid, occurring within a quarter, or more sluggish, taking place over many …