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 …

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 …

sign according to a life cycle model for consumption. Regressions to explain the level of borrowing by individuals suggest …

Economic theory predicts that the consumption path of unconstrained homeowners responds to the interest rate, while the … consumption path of credit constrained homeowners is determined by the size and timing of payments (mortgage maturity). We exploit … to estimate group-specific consumption responses to changes in the credit conditions. Our estimates suggest that the …

Economic theory predicts that individuals exposed to the risk of losing their job postpone their consumption and … consumption we estimate the link between the probability that several household members lose their job and the wealth and … consumption of that household. We instrument the type of contract using regional variation in the amount, timing and target groups …