choices over the life cycle. We start by analyzing the theoretical impact of income changes on consumption - highlighting the … contributions, distinguishing between papers that use only income data and those that use both income and consumption data. The … and identify the income process or the information set of the individuals. Second, one can assume that the income process …

We review different empirical approaches that researchers have taken to estimate how consumption responds to income … changes. We critically evaluate the empirical evidence on the sensitivity of consumption to predicted income changes …, distinguishing between the traditional excess sensitivity tests, and the effect of predicted income increases and income declines. We …

heterogeneity. In contrast to simpler models that attribute all income fluctuations to shocks, our framework disentangles …

Study of Income Dynamics to explore the dynamics of alternative measures of consumption inequality. All of our different … nearly the same amount as income inequality …Recent research has documented that income inequality in the United States has increased dramatically over the prior …