transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use CEX … repeated cross-section data on consumption and income to decompose idiosyncratic changes in income into predictable life … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use CEX … repeated cross-section data on consumption and income to decompose idiosyncratic changes in income into predictable life … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use CEX … repeated cross-section data on consumption and income to decompose idiosyncratic changes in income into predictable life … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

response to the forecasts, extrapolate to expectations about their personal economic circumstances and adjust their consumption … exposure to macroeconomic risk, consistent with sticky information models in which people are inattentive, but understand how …

response to the forecasts, extrapolate to expectations about their personal economic circumstances and adjust their consumption … exposure to macroeconomic risk, consistent with sticky information models in which people are inattentive, but understand how …

saving motive by eliciting subjective expectations on future consumption. We find that expected consumption risk is higher … estimate the degree of prudence by associating expected consumption risk with expected consumption growth. Robust OLS and IV … for the young and the self-employed, and is correlated positively with income risk. We insert these subjective …