TY  - JOUR
AU  - Mankiw,N. Gregory
AU  - Zeldes,Stephen P.
TI  - The Consumption of Stockholders and Non-Stockholders
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3402
PY  - 1991
Y2  - November 1991
UR  - http://www.nber.org/papers/w3402
L1  - http://www.nber.org/papers/w3402.pdf
N1  - Author contact info:
N. Gregory Mankiw
Department of Economics
Littauer 223
Harvard University
Cambridge, MA  02138
Tel: 617/495-4301
Fax: 617/495-7730
E-Mail: ngmankiw@fas.harvard.edu

Stephen P. Zeldes
Graduate School of Business
Columbia University
3022 Broadway, Uris 825
New York, NY 10027-6902
Tel: 212/854-2492
Fax: 212/208-4699
E-Mail: stephen.zeldes@columbia.edu
AB  - Only one-fourth of U.S. families own stock. This paper examines whether the consumption of stockholders differs from the consumption of non-stockholders and whether these differences help explain the empirical failures of the consumption-based CAPM. Household panel data are used to construct time series on the consumption of each group. The results indicate that the consumption of stockholders is more volatile than that of non-stockholders and is more highly correlated with the excess return on the stock market. These differences help explain the size of the equity premium, although they do not fully resolve the equity premium puzzle.
ER  -