We simulate a buffer stock model of consumption at the individual level, aggregate, and estimate regressions on the … aggregated (simulated) data. Regressions of consumption on current (or lagged) disposable labor income—using the simulated … data—are used to predict the marginal effect of changing persistence of income shocks or changing aggregate uncertainty …

capita national wealth will increase compared to the balanced growth path, although the private saving rate will be declining …

essential to deal with an important issue: individual Euler equations depend on individual consumption which is not observable …. In this paper it is shown that individual Euler equations are identified when only data on household consumption …

to individual saving decisions …

heterogeneous, leading to gambling. Second, in a consumption-saving problem with stochastic income, agents are both overconfident …

We examine an economy in which the cost of consuming some goods can be reduced by making commitments to consumption … consumers to adopt a realtively inflexible housing consumptin plan. We show that consumption commitments can cause risk … the model are compared with corresponding moments of US data on layoff risk and housing consumption. …

differential information. We consider a single period, pure exchange economy with aggregate uncertainty in which agents show …