We extend the standard approach to Bayesian forecast combination by forming the weights for the model averaged forecast … greater protection against in-sample overfitting and improves forecast performance. For the predictive likelihood we show … analytically that the forecast weights have good large and small sample properties. This is confirmed in a simulation study and an …

We estimate Euler equations for a number of countries and find that the excess sensitivity of consumption to current …

transmission, including the crowding-in of consumption and the `puzzle' of real exchange rate depreciation. Time series evidence …

cycle, of several dimensions of economic inequality, including wages, labor earnings, income, consumption, and wealth. After … distribution. Consumption inequality increased less than disposable income inequality, and tracked the latter much more closely at …

The consumption behaviour of UK, US and Japanese households is examined and compared using a modern Ando …-Modigliani style consumption function. The models incorporate income growth expectations, income uncertainty, housing collateral and … credit availability for UK and US but not Japanese households has undergone large shifts since 1980. The average consumption …

This Paper uses panel data on household consumption and income to evaluate the degree of insurance to income shocks …. Our aim is to describe the transmission of income inequality into consumption inequality. Our framework nests the special …-sectional distribution of consumption growth, and analyse the way these two measures of household welfare correlate over time. We combine …

future policy reversal lowers the consumption rate of interest and thus will increase current consumption. Furthermore, to …

on how many hours to work with obvious consequences for the household budget. We therefore model consumption and labor …

This paper develops an analytical framework to study consumption and labour supply in a rich class of heterogeneous … equilibrium joint distribution over wages, hours and consumption. With these expressions in hand, we show that all the structural … wages and hours, and cross-sectional data on consumption. We estimate the model on CEX and PSID data for the U.S. economy …

payments (e.g. tax rebates) are spent on non-durable household consumption in the quarter that they are received. We develop a … Finances. A version of the model parametrized to the 2001 tax rebate episode is able to generate consumption responses to …