This paper presents a simple new method for estimating the size of ‘wealth effects?on aggregate consumption. The method exploits the well-documented sluggishness of consumption growth (often interpreted as ‘habits?in the asset pricing literature) to distinguish between short-run and long-run...

This paper presents a simple new method for estimating the size of 'wealth effects' on aggregate consumption. The method exploits the well-documented sluggishness of consumption growth (often interpreted as 'habits' in the asset pricing literature) to distinguish between short-run and long-run...

All good comes at a price. The German corporatetax reform is good overall,1 but the major benefit,the tax rate cut, comes with a tightened andhighly detrimental change of ownership rule. TheGerman term Mantelkauf, literally translated as‘‘coat purchase,’’ is deceiving — it sounds and...