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 lifecycle … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

in a model with non-durable and durable consumption. The stock of the durable is exposed to risk against which households …-durable consumption. Introducing labor income risk into the model does not necessarily increase the importance of market insurance if the …

effects. We exploit the unique design of an aid program's experimental trial to identify its indirect effect on consumption …

-income households increased their demand for credit to finance higher consumption expenditures in order to "keep up" with higherincome …

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 …

Many households have insufficient savings to handle moderate and routine consumption shocks. Many of these financially …

job search with liquid wealth accumulation and consumption of housing that can be rented, bought on credit, or sold. In …

of disposable income. We use household-level data to explain why households are postponing consumption despite rapid … income growth. Tracing cohorts over time indicates a virtual absence of consumption smoothing over the life cycle. The age …