We use CEX repeated cross-section data on consumption and income, to evaluate the nature of increased income inequality … for cyclical behavior of consumption risk, casting doubt on Constantinides and Duffie’s (1995) explanation for the equity …

transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use CEX … repeated cross-section data on consumption and income to decompose idiosyncratic changes in income into predictable life … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

consumption by running down their assets, while the employed save to buffer against future unemployment spells. I also show that …

Consumption Expenditure Survey (CEX) to estimate individual-level impulse responses as well as multipliers for government spending …-Ricardian) models, most likely due to credit constraints. Furthermore, government spending policy shocks tend to decrease consumption …