the period 1980q1-2011q4. That is, income is more often found to predict consumption and saving than the converse. Our … consumption and by exploring the direction of Granger causality between the two series. We also give evidence that house price … changes played a role in the US income and consumption dynamics, before, during and after the Great Recession. …

In this paper the e ects on aggregate consumption of changes in the age distribution of the population are analysed … empirically. Economic theories predict that age influences individuals’ saving and consumption behaviour. Despite this, age … structure e ects are rarely controlled for in empirical consumption functions. Our findings suggest that they should. By …

Current business cycle models systematically underestimate the correlation between consumption and investment. One … reason for this failure is that a positive investment-specific technology shock generally induces a negative consumption … response. The objective of this paper is to investigate whether positive consumption responses to investment …