Two structural cointegrated models of consumption, labor income and wealth are specified and estimated with US data … using the approach of Pagan and Pesaran (2008). We find that consumption and labor income are weakly exogenous in the …. The reallocation shock has an inverse effect on labor income and wealth, but has little effect on consumption, a result …

This paper studies the empirical relationship between consumption and saving under two different sources of uncertainty …

, intertemporal lifecycle consumption optimization problem and the effect of revealing social information on past average consumption … in solving for the optimal consumption path. Instead, we find that the provision of social information on past average … levels of consumption results in a greater deviation of consumption from both the unconditional and the conditionally optimal …

While most of the literature explaining the change in consumption composition has focused on the role of relative …

We build a panel of 14 emerging economies to estimate the magnitude of wealth effects on consumption. Using modern …

examine how the insurance coverage affects household consumption. Results show that, on average, the health insurance coverage … increases nonmedical-related consumption by more than 5%. This insurance effect is observed even in households with no out … reimbursement from the insurance program. The program within these villages stimulates less consumption among new participants than …

This paper investigates the causes of the Italian consumption bust of the early 1990s by estimating deviations from … 'normal' consumption using household level data for 1985-94. The data set used is a particularly rich, but as yet unexplored … households each year. The main findings are that the decline in consumption was larger for the working age households. The fall …

In this paper we analyse the relationship between unemployment and consumption. We study this relationship with panel … smaller consumption losses in Spanish and Italian households. We discuss this finding in the light of different market and … that credit and insurance markets are also more developed in the North than in the South, existing theories of consumption …