We study whether the level of household indebtedness is related to the interest rate elasticity of private consumption … even as the household sector's debt-to-income ratio has almost doubled in the past 20 years. Estimates based on the … household-level Finnish Wealth Survey suggest that the share of liquidity-constrained households has declined over the same time …

households who are perceived to be richer, on household savings and consumption. When controlling for own income as well as … consumption of up to 23 euros depending on the household's position in the income distribution. Our findings suggest that changing … the German Socio-Economic Panel, we estimate the effect of reference consumption, defined as the consumption level of all …

Keynesian relative income hypothesis, which claims that current income, its distribution, household borrowing, and household … alternative Keynesian theory of consumption based on the relative income hypothesis …The outbreak of the financial crisis in 2008 witnessed a marked contraction in US consumption spending that had …

. We propose a novel consumption-savings model in which a consumer has a well-defined preference ordering over both …, households optimally choose a lumpy profile of memorable goods consumption even in a frictionless world. Using Consumer … cost of consumption fluctuations and conduct an excess-sensitivity test of the consumption response to predictable income …

. We propose a novel consumption-savings model in which a consumer has a well-defined preference ordering over both …, households optimally choose a lumpy profile of memorable goods consumption even in a frictionless world. Using Consumer … cost of consumption fluctuations and conduct an excess-sensitivity test of the consumption response to predictable income …

. We propose a novel consumption-savings model in which a consumer has a well-defined preference ordering over both …, households optimally choose a lumpy profile of memorable goods consumption even in a frictionless world. Using Consumer … cost of consumption fluctuations and conduct an excess-sensitivity test of the consumption response to predictable income …

's predictions for the consumption response to predictable income changes. We find that the welfare cost of household …. Memorable goods expenditures are 20% the size of nondurable expenditures, but twice as volatile. We then develop a consumption-savings …-level consumption fluctuations induced by income shocks fall from 20.4 to 12.3 percentage points if memorable goods are accounted for …