the period 1980q1-2011q4. That is, income is more often found to predict consumption and saving than the converse. Our …The ‘saving for a rainy day’ hypothesis implies that households’ saving decisions reflect that they can (rationally … modus operandi is to investigate the ‘saving for a rainy day’ hypothesis by testing (weak) exogeneity of income and …

consumption, aggregate wealth, and labour income should predict both stock returns and housing returns. We use quarterly data for … temporarily allow consumption to rise. Regarding housing returns, if housing assets are complementary to stocks, then investors … their consumption. …

deviations from the common trend among consumption, aggregate wealth, and labour income, cay, and focus on the implications for … future stock returns to be higher, they will temporarily allow consumption to rise. Regarding housing returns, if housing … substitutes consumption will be temporarily reduced. …

We show how optimal saving in a two-period model is affected when prudence and riskaversion of the underlying utility …

the analogy between habit formation and durable consumption to study the taxation of durable and nondurable commodities. …

In this paper we examine the role of mortgage equity withdrawal in explaining the decline of the US saving rate, since … affect the saving rate. We estimate a Vector Error Correction (VEC) model including the saving rate, asset prices, equity … withdrawal and interest rates and find that indeed mortgage equity withdrawal is a key determinant of the observed saving pattern. …

testing has two counteracting effects on welfare. On the one hand, it improves consumption insurance by introducing state … incentive to save and fewer private resources are used for consumption smoothing during unemployment. Our results show that in a …

into account stylized facts on wealth accumulation, we model agent heterogeneity through differences in saving behavior … occur. We show that a consumption tax or a capital tax, levied to finance public capital, does not increase inequality. In …