of the twentieth century are consistent with consumption smoothing tendencies in the spirit of the permanent income … components, then we estimate marginal propensities to save out of each component of income. The two methodologies deliver similar … different contemporary household data. Marginal propensities to save out of unexpected income shocks are large relative to …

The issue of whether higher lifetime income households save a larger fraction of their income is an important factor in … empirical methods and the Panel Study on Income Dynamics, the Survey of Consumer Finances, and the Consumer Expenditure Survey … income groups: differences in Social Security benefits, different time preference rates, non-homothetic preferences, bequest …

Uninsurable income risk is often cited as an explanation for empirical deviations from the Lifecycle/Permanent-Income … estimating income uncertainty essentially measure the cross-sectional variance of a subpopulation rather than the true … income uncertainty. We measure income uncertainties as the variance of income forecasting errors at different ages and over …

log consumption, assets, and labor income will be cointegrated. They conclude that this cointegrating relationship is …, assets, and labor income that are jointly consistent with an underlying budget constraint. By contrast, Lettau and Ludvigson …

Using data from the PSID, we find that household income has become noticeably more volatile during the past thirty … years. We estimate that the standard deviation of percent changes in household income rose one-fourth between the early 1970 …