I am reading: Aggregate wealth and aggregate consumption

The Wealth Effect in Empirical Life-Cycle Aggregate Consumption Equations - Mehra (2001)

main results (approximately):

• cointegration / error correction model.
• in long run a $1 increase in annual disposable income -> $0.55 increase in annual consumption.
  
• in long run a $1 increase in wealth -> $0.04 increase in annual consumption

These are not stunning revelations as they confirm previous results. However it is something to think about given the size of the swings in the stock and housing markets that we have experienced over the last decade.