impact of changes in wealth on household consumption and the overall macroeconomy. There is an extensive existing literature …The effect of wealth on consumption is an issue of longstanding interest to economists. Analysts believe that … fluctuations in household wealth have driven major swings in economic activity. This paper considers so-called wealth effects - the …

(relative to other factors) for consumption falls in 2008/09. Thus wealth effects on consumption can be important for households …We estimate marginal propensities to consume from wealth shocks for Italian households. Large asset price shocks in … 2008 underpin an IV estimator. A euro fall in financial or risky financial wealth resulted in cuts in annual total (non …

to consume (MPCs). Our main contribution is to document how MPCs vary with household characteristics and prize size, and … of large prizes (USD 8,300-150,000) is slightly below one half. While the consumption responses we find are high, their … systematic relations with observables point toward well-understood mechanisms from existing theory and should be useful to …

consumption-saving behavior. We construct a novel consumption-saving model where the household must infer the persistent component … marginal propensity to consume because the short run covariance between income growth and consumption growth increases when … can be identified from panel data on income and consumption. Finally, we estimate a high degree of knowledge in the Panel …

This paper aims to test the microfoundations of consumption models and quantify the macro implications of heterogeneity … in consumption behavior. We propose a new empirical method to estimate the sensitivity of consumption to permanent and … large sample size, along with detailed household balance sheet information, allows us to finely divide the population along …

. Fifth, we find evidences that housing prices shock decreases consumption inequality while financial wealth shocks have a … countries. We estimate the MPC based on a cross-country harmonized household level dataset which combines surveys on wealth …This paper studies the heterogeneity of the marginal propensity to consume out of wealth (MPC) both across and within …

the financial wealth shock are larger if the youngest and/or oldest households are excluded. Results indicate that … responses to the wealth shock were stronger for those who became pessimistic about the stock market, and for those owners of … other factors) for consumption falls in Italy in 2007/08. …

. The consumers with low wealth and bad income shocks search more and pay less which makes their consumption higher than a …In this paper we introduce price search decision to a life cycle model, and differentiate consumption from expenditure … consumption is around 15% smaller than the cross sectional variance of expenditure through out the life cycle. Price search plays …

insurance mechanism against adverse income shocks and increases the welfare of a new born by 3.9 percent in consumption …In this paper, we differentiate consumption from expenditure by incorporating price search decision into an otherwise … standard life-cycle model. In our model, households can pay lower prices for the same consumption good if they allocate more …

Exploring dynamics of household final consumption is an important concern for policy-makers. Turkey had witnessed … and therefore, other macroeconomic variables. In this paper, we examine the linkage between household final consumption … positively, interest rate and equity market wealth are negatively associated with consumption. Variance decomposition and impulse …