Social and Behavioral Sciences Commons^™

Investigating The Impact Of Aggregate Household Wealth Changes: Permanent Versus Transitory Wealth Effects On Consumption And Taxable Income, Markland Howard Tuttle

Doctoral Dissertations

This dissertation examines the permanent and transitory effects of aggregate wealth changes on aggregate consumption and the distribution of taxable income, while controlling for other important macroeconomic factors. In the three essays presented, the first investigates the relationship between consumption, wealth, and disposable income. In addition, the relationship between the disaggregated components of consumption (non-durable, durable, and services consumption), wealth, and disposable income is explored. Through the use of cointegration techniques and Vector Error-Correction Models, the permanent and transitory responses of all series are investigated. The findings suggest that aggregate consumption, wealth, and disposable income are endogenous in the long …