panel data on income and consumption from the ECPF for the period 1987-96, we decompose the variance of income shocks into a …

weak exogeneity in panel cointegration models. The test has a limiting Gumbel distribution that is obtained by first … aggregate consumption …

We estimate the importance of preference interdependence from consumption choices. Our strategy follows the literature … that tests the constraints imposed by optimality in the evolution of individual consumption. We derive a Euler equation … habits and envy places additional restrictions on the evolution of the optimal consumption path. We use a unique data set …

We study how estimators used to impute consumption in survey data are inconsistent due to measurement error in … consumption. Previous research suggests instrumenting consumption to overcome this problem. We show that, if additional regressors … are present, then instrumenting consumption may still produce inconsistent estimators due to the likely correlation …

The paper confronts a key implication of the precautionary model of saving/consumption, using micro-data on British … households. The results provide support for the key proposition that job insecurity affects consumption. A one standard deviation … increase in unemployment risk for the head of household is estimated to reduce consumption by 2.7 per cent. This effect is …

By how much do employed households reduce their consumption when the aggregate unemployment rate rises? In Spain during … consumption of more than 0.7% per equivalent adult. This reduction is the response of forward-looking agents to downward revisions … of their expectations on future income growth rates: the shadow of unemployment. Using consumption panel data that …

This paper measures how households smooth changes in consumption when incomes are shifted by permanent or transitory … skipping the imputation methods used by the previous literature to mitigate the significant lack of income and consumption …