Decomposing Consumer Wealth Effects: Evidence on the Role of Real Estate Assets Following the Wealth Cycle of 1990-2002

During the period of 1990-2002 US households experienced a dramatic wealth cycle, induced by a 369% appreciation in the value of real per capita liquid stock market assets followed by a 55% decline. However, consumer spending in real terms continued to rise throughout this period. Using data from 1990-2005, traditional life-cycle approaches to estimating macroeconomic wealth effects confront two puzzles: (i) econometric evidence of a stable cointegrating relationship among consumption, income, and wealth is weak at best; and (ii) life-cycle models that rely on aggregate measures of wealth cannot explain why consumption did not collapse when the value of stock market assets declined so dramatically. We address both puzzles by decomposing wealth according to the liquidity of household assets. We find that the significant appreciation in the value of real estate assets that occurred after the peak of the wealth cycle helped sustain consumer spending from 2001 to 2005.

Natural Theology: A Reevaluation of Christianity's Relationship to the Natural World

In this thesis I offer two separate arguments for the creation of an environmentally friendly Christian theology. These arguments, although interconnected, are roughly divided into the main chapters of the thesis. I will begin in Chapter Two by offering a negative argument against the assumption that the natural world is sinful. In their article Hauerwas and Berkman suggest that the suffering of animals is both an example of the sinful state of the environment and a justification for human separation from an unholy natural environment. In response to this view I will argue in the second chapter that the suffering of animals can be seen as part of God's intentions for our world. Suffering, in both the human and the larger world, is not evidence of a fundamental flaw in natural systems. Instead, the cycle of death and life found in the natural world can be profoundly spiritual.