Large swings in aggregate household-sector spending, especially for big ticket items such as cars and housing, have been a dominant feature of the macroeconomic landscape in the past two decades. Income and wealth inequality increased over the same period, leading some to suggest the two phenomena are interconnected. Indeed, there is supporting evidence for the idea that heterogeneity in economic shocks and spending are connected, most notably in studies using local-area geography as the unit of analysis.
Heterogeneity in Economic Shocks and Household SpendingSebastian Devlin-Foltz and John Sabelhaus ,
FEDS Working Paper, Fiscal Studies 2016