Real, total consumption growth deviations from normal stock market wealth effects lead economic growth in advanced economies in the Americas, in Europe and in AustralAsia, as shown by Breeden (2013). Consumers' expenditures reflect their information about employment opportunities and future real...

This article shows that real, total consumption growth deviations from normal stock market wealth effects lead economic growth. Consumers' expenditures reflect their information about employment opportunities and future real wage growth, as well as information about the volatility of future...