Holmes, Mark J.Shen, Xin2013-10-012013-10-012013-092013Holmes, M. J., & Shen, X. (2013). A note on the average propensity to consume, wealth and threshold adjustment. Economic Modelling, 35, 309-313.https://hdl.handle.net/10289/8043We explore the connection between the average propensity to consume (APC) and wealth to income ratio (WY) in the US. We find evidence of a long-run relationship characterised by threshold error correction. It is the APC that responds to long-run disequilibrium where the speed of adjustment is asymmetric insofar as being most likely fastest in regimes characterised by a high APC and low WY.enthreshold error correctionaverage propensity to consumewealthJournal Article10.1016/j.econmod.2013.07.008