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Do the "Joneses" really matter? Peer-group versus correlated effects in intertemporal consumption choice

Maurer, Jürgen; Meier, André - Institute for Fiscal Studies (IFS) - 2005

Recent theoretical contributions have suggested consumption externalities, or peergroup effects, as a potential explanation for some of the puzzles in macroeconomics and finance. However, the empirical relevance of peer effects for intertemporal consumption choice is a completely open question....

Persistent link: https://www.econbiz.de/10005037500

The effect of the financial crisis on older households in England

Banks, James; Crawford, Rowena; Crossley, Thomas; … - Institute for Fiscal Studies (IFS) - 2012

estimate the effect of wealth shocks on household consumption and individual expectations of the future. Many household … experienced a significant wealth shocks, but these shocks led to modest spending effects and small revisions to expectations … regarding future bequests. Expectations of bequests seem particularly tied to housing wealth. …

Persistent link: https://www.econbiz.de/10011152732

Heterogeneity in time preference in older households

Bozio, Antoine; Laroque, Guy; O'Dea, Cormac - Institute for Fiscal Studies (IFS) - 2013

This paper suggests a method for estimating the distribution of discount rates using panel data on income and wealth …

Persistent link: https://www.econbiz.de/10010606861

Is the elasticity of intertemporal substitution constant?

Crossley, Thomas; Low, Hamish - Institute for Fiscal Studies (IFS) - 2005

<p>This paper shows that a power utility specification of preferences over total expenditure (ie. CRRA preferences) implies that intratemporal demands are in the PIGL/PIGLOG class. This class generates (at most) rank two demand systems and we can test the validity of power utility on cross-section...</p>

Persistent link: https://www.econbiz.de/10005509462

Booms and busts: consumption, house prices and expectations

Attanasio, Orazio; Blow, Laura; Hamilton, Robert; … - Institute for Fiscal Studies (IFS) - 2005

households' wealth, particularly for those in a position to trade down the housing ladder, which increases their desired level of … households, which appears to contradict the wealth channel. These findings therefore suggest that common causality has been the …

Persistent link: https://www.econbiz.de/10005037537

Saving on a rainy day, borrowing for a rainy day

Alan, Sule; Crossley, Thomas; Low, Hamish - Institute for Fiscal Studies (IFS) - 2012

The aim of this paper is to understand what a recession means for individual consumers, and to model in a life-cycle framework how individuals respond to recessions. Our focus is on the sharp increase in savings rates that have been observed in the current and recent recessions. We show...

Persistent link: https://www.econbiz.de/10010827626

Household consumption through recent recessions

Crossley, Thomas; Low, Hamish; O'Dea, Cormac - Institute for Fiscal Studies (IFS) - 2012

This paper examines trends in household consumption and saving behaviour in each of the last three recessions in the UK. The 'Great Recession' has been different from those that occurred in the 1980s and 1990s. It has been both deeper and longer, but also the composition of the cutbacks in...

Persistent link: https://www.econbiz.de/10010567021

Income variance dynamics and heterogenity

Meghir, Costas; Pistaferri, Luigi - Institute for Fiscal Studies (IFS) - 2001

Recent theoretical work has shown the importance of measuring microeconomic uncertainty for models of both general and partial equilibrium under imperfect insurance. In this paper the assumption of i.i.d. income innovations used in previous empirical studies is removed and the focus of the...

Persistent link: https://www.econbiz.de/10005727602

Errors in survey reports of consumption expenditures

Battistin, Erich - Institute for Fiscal Studies (IFS) - 2003

This paper considers data quality issues for the analysis of consumption inequality exploiting two complementary datasets from the Consumer Expenditure Survey for the United States. The Interview sample follows survey households over four calendar quarters and consists of retrospectively asked...

Persistent link: https://www.econbiz.de/10005509497

Wealth effects and the consumption of Italian households in the Great Recession

Bottazzi, Renata; Trucchi, Serena; Wakefield, Matthew - Institute for Fiscal Studies (IFS) - 2013

We estimate marginal propensities to consume from wealth shocks for Italian households. Large asset price shocks in … 2008 underpin an IV estimator. A euro fall in financial or risky financial wealth resulted in cuts in annual total (non … changes in housing wealth are 0.2 to 0.4 cents/euro. Counterfactuals indicate financial wealth effects were important …

Persistent link: https://www.econbiz.de/10010686005