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Household wealth can play an important role in modeling households' consumption/savings decisions. Permanent income and life-cycle theories of consumer, for instance, predict a relationship between wealth and the life-time pattern of consumption. The growing importance of shares in households' portfolios and more recently the large and continuous rise in house prices in many developed economies justify the recent upsurge in estimating wealth effects on consumption. In Portugal, until recently there was virtually no literature relating wealth and consumption, a fact largely due to the lack of appropriate data.
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