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|Title:||On the stability of the wealth effect|
Gabriel, Vasco J.
|Series/Report no.:||NIPE Working Paper series|
|Abstract(s):||Evidence of instability of the wealth effect in the USA is presented through the estimation of a Markov switching model of the long-run aggregate consumption function. The dating of the regimes appears to bear relation to ovements in asset prices. A model-based explanation of the findings is suggested, highlighting the importance of the short-run relation between consumption, income and wealth in explaining the estimated long-run coefficients.|
|Appears in Collections:||NIPE - Documentos de Trabalho|