This paper studies the consumption decisions of agents who face costs of acquiring, absorbing and processing … consumption plans. In between updating dates, they remain inattentive. This behaviour implies that news disperses slowly … throughout the population, so events have a gradual and delayed effect on aggregate consumption. The model predicts that …

We show that the hedging benefit of owning a home reduces the variability of housing consumption after a move. When a … consumption by about 11%. Households at the top end of the covariance distribution who are likely to have owned large homes before …

This paper studies the consumption decisions of agents who face costs of acquiring, absorbing and processing … consumption plans. In between updating dates, they remain inattentive. This behavior implies that news disperses slowly throughout … the population, so events have a gradual and delayed effect on aggregate consumption. The model predicts that aggregate …

Most decisions involve variability in two dimensions: uncertainty across states of nature and fluctuations over time … uncertainty, which we believe is driven importantly by the instrumental value of early uncertainty resolution. This same …

I study how boundedly rational agents can learn a "good" solution to an infinite horizon optimal consumption problem … under uncertainty and liquidity constraints. Using an empirically plausible theory of learning I propose a class of adaptive … learning algorithms that agents might use to choose a consumption rule. I show that the algorithm always has a globally …