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 …

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

This paper aims at analysing the impact of household borrowing on consumption. These variables are modelled jointly in … consumption: when lending is above (below) its long-run level, future consumption contracts (expands). This evidence is also …, found in a simpler model in which consumption is not modelled explicitly. In addition, when consumption departs from its …

households. The results provide support for the key proposition that job insecurity affects consumption. A one standard deviation …The paper confronts a key implication of the precautionary model of saving/consumption, using micro-data on British … 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 …