Plausibly Exogenous [607] - Wealth Shocks (09/16/2021)
LHS Variable
Consumption
RHS Variable
Stock market wealth
Source of Exogenous Variation
Comparison of households who enter the month with stock market portfolios that are highly similar in terms of size, risk and expected returns, but earn different gains over the month because they consist of different stocks with idiosyncratic returns
- Andersen, Johannesen, and Sheridan (2021) “Dynamic Spending Responses to Wealth Shocks: Evidence from Quasi-Lotteries on the Stock Market”