¹³One problem with the particular specifications of Bakshi and Chen 1996 and Zou 1994 is that their specifications imply that consumers with zero wealth would have negative infinite utility. According to the SCFs, however, about ten percent of the population has zero or negative net worth. Furthermore, their model does not necessarily predict that high lifetime income consumers will save more than those with low lifetime income. Finally, there is a growing consensus that the standard Life Cycle model, with an appropriate treatment of uncertainty, does a fairly good job of describing the behavior of the typical household without any need for important direct effects of wealth on utility. Only at the upper reaches of the wealth distribution does behavior unmistakably diverge from the model’s predictions.