How important is the stock market effect on consumption

By Sydney C. Ludvigson, C. Steindel. 2007

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Does Stock Market Wealth Matter for Consumption (2001, background): “Ludvigson and Steindel (1999) raise some questions about the short-term dynamics of the aggregate relationship, but Davis and Palumbo (2001) show that most reasonably specified aggregate consumption functions imply a gradual adjustment of household spending to capital gains.”
Consumption, (Dis)Aggregate Wealth, and Asset Returns (2010, background): “Ludvigson and Steindel (1999) also identify a wealth e¤ect on consumption, although referring that the behavior of this market is not a good indicator of future consumption and that the e¤ect is unstable over time.”