9By including the assets in the estimated equation, we follow the literature on precautionary savings and liquidity constraints. Calibrated theoretical models imply that the relationship between At and Et[Rt+1] is almost linear. However, empirical estimates of Euler equations using macro data generally produce insignificant (or even implausible) coefficients on expected interest rates (see, e.g., Hall (1988) and table 3 of Campbell and Mankiw (1991); and Vissing-Jørgensen (2002) for evidence in micro consumption data).