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 …

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 …

Under efficient consumption risk sharing, as assumed in standard international business cycle models, a country …’s aggregate consumption rises relative to foreign consumption, when the country’s real exchange rate depreciates. Yet, empirically …, relative consumption and the real exchange rate are essentially uncorrelated. I show that this ‘consumption-real exchange rate …

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

one that produces a deviation from its shared trend with consumption and labor income. Using quarterly stock market data … behavior imply that the log consumption-aggregate (human and nonhuman) wealth ratio forecasts the expected return on aggregate … components may be expressed in terms of observable variables, namely in terms of consumption, nonhuman wealth and labor income …

, agents’ prior beliefs are endogenously heterogeneous. Finally, in a consumption-saving problem with stochastic income, agents …

takes into account endogenous reactions and consumption smoothing of households. We use the methodology to study the impact …

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 …

We examine whether credit contributes to business cycle fluctuations by directly affecting consumption rather than … vertical and consumers face a credit ceiling. Using this assumption we find consumption growth depends on the interest rate … consumption in the late 1980s were more likely due to income revisions than financial deregulation per se. …