¹⁹As a digression, this seems a good place to explain why we introduce the term ‘eventual’ MPC; an earlier draft called this object the ‘long-run MPC.’ We are sympathetic to the objection that in a general equilibrium context it is not clear what ‘long-run MPC out of wealth’ means, because in the long run the amount of wealth is endogenous with respect to consumption choices; indeed, one interpretation of the cointegration discussion above is that the only sensible definition of the ‘long-run MPC out of wealth’ is that it is zero. Effectively, we are assuming that our estimates are identified by high- and medium-frequency variation that is largely uncontaminated by the very long run general equilibrium effects that plague cointegration analysis.