We explore the long and short run relationship between private consumption, disposable income and housing and financial … wealth approximated by price indices for a panel of industrialized countries. Consumption, income and wealth are cointegrated … explain aggregate consumption behaviour. The cointegrating vector is robust and in line with the life cycle permanent income …

The present paper tests for the existence of multicointegration between real per capita private consumption expenditure … income and consumption expenditure on the one hand, and the stock of consumers? wealth, which can be considered as cumulative … multicointegrating relations and find supporting evidence for the existence of multicointegration in US consumption data. …

, smooth and stabilize consumption as well as minimize portfolio risk. In this context we also show how the correlation between …

, especially for the future path of private consumption. Although they receive high attention in the media, their forecasting power …

deviations from the common trend among consumption, aggregate wealth, and labour income, cay, and focus on the implications for … future stock returns to be higher, they will temporarily allow consumption to rise. Regarding housing returns, if housing … substitutes consumption will be temporarily reduced. …

consumption, aggregate wealth, and labour income should predict both stock returns and housing returns. We use quarterly data for … temporarily allow consumption to rise. Regarding housing returns, if housing assets are complementary to stocks, then investors … their consumption. …