The available empirical studies for the United States estimate long-run propensities to consume in a range of 3 to 7 cents out of each dollar of total wealth increase. The  2  M. Woodford, “Central bank communication and policy effectiveness”, NBER Working Paper No. 11898, December 2005.
BIS Review 124/2007  5  propensity in the euro area is somewhat lower (3 to 4 cents per dollar of increase in total wealth) according to recent ECB estimates. 3 •  The results on the relative importance of changes in financial and housing wealth are not univocal.