Attanasio, Orazio P. - In: Handbook of macroeconomics : volume 1, part B, (pp. 741-812). 1999
Consumption is the largest component of GDP. Since the 1950s, the life cycle and the permanent income models have … constituted the main analytical tools to the study of consumption behaviour, both at the micro and at the aggregate level. Since … the literature to estimate preferences is the lack of a ‘consumption function’. A challenge for future research is to use …
