State-level consumption exhibits excess sensitivity to lagged income to the same extent as US aggregate data, but state …-specific (idiosyncratic) consumption exhibits substantially less sensitivity to lagged stste-specific income - a result that also holds for … reaction of consumption to idiosynctratic disposable income shocks even if it fails at the aggregate US level. Further analysis …

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 …

Standard macroeconomic models suggest that the ‘great ratios’ of consumption to output and investment to output should … be stationary. The joint behaviour of consumption, investment and output can then be used to measure trend output. We … adopt this approach for the USA and UK, and find support for stationarity of the great ratios when structural breaks are …

multipliers and the responses of consumption and the real wage. One explanation for the disagreement is that fiscal shocks are …