This notes proposes an approximation to the consumption function in the buffer-stock model. …

We argue that the equation commonly used in the estimation of the wealth effect on consumption might be unsuitable for … volatility increases. Estimation of a Markov-switching model of the usual long-run aggregate consumption equation provides …

among consumption, financial wealth, housing wealth and labor income (summarized by the variable cday) should help to … different assets; and (ii) the faster rate of convergence of the coefficients to the "long-run equilibrium" parameters. Unlike …

outweighs the improvement in the covariance of the trade balance with income, increasing consumption volatility. Additionally …

the basic Lifecycle/Permanent-Income Hypothesis, consumption roughly tracks income over the lifecycle and because of … can better explain the lifecycle consumption profile than the corresponding buffer-stock saving model …

proposed technique that exploits the sluggishness of consumption growth. I argue that, compared to the widespread cointegration …

on relative wealth preferences. In contrast to relative consumption preferences, they allow for the possibility that … agents work too little in the long run, while under both specifications the steady-state levels of consumption and the stock … unambiguously characterized by under-consumption and excessive work effort. The social optimum can be replicated by taxing capital …