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 …

increase consumption, but only during bust periods. Wealth transfers from lottery winners to low income households enable … fiscal policy to stabilize consumption during bust periods. …

. Further, while during earlier parts of our sample both a slowdown in consumption and investment growth contribute to a … decomposition for consumption growth shows that the contribution of stock market volatility becomes negligible as we go from earlier …

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 …

growth expectations? 4) What is the potential of such expectation changes for explaining the volatility of consumption to …

, and measures of aggregate consumption for each of the geographic units over time. We estimate regression models in levels …, first differences and in error-correction form, relating consumption to income and wealth measures. We find a statistically … significant and rather large effect of housing wealth upon household consumption. …

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 examine whether credit contributes to business cycle fluctuations by directly affecting consumption rather than … vertical and consumers face a credit ceiling. Using this assumption we find consumption growth depends on the interest rate … consumption in the late 1980s were more likely due to income revisions than financial deregulation per se. …