consumption-saving model with labor income risk and incomplete markets to relate income dynamics to consumption and welfare, and …This paper develops a framework for the quantitative analysis of individual income dynamics, mobility and welfare …. Individual income is assumed to follow a stochastic process with two (unobserved) components, an i.i.d. component representing …

for this hypothesis, and also suggest that private and government consumption are substitutes in the household utility …This paper explores the hypothesis that the propensity to consume out of income varies in a non-linear fashion with … examines whether there is any empirical evidence to support the hypothesis that households move from non-Ricardian to Ricardian …

This paper uses Engel curves to estimate real income growth in Brazil. The estimated per capita household real income …-off effects of trade liberalization and inflation stabilization. The estimated unmeasured gains are higher for poorer households …, implying a marked reduction in "real" inequality. This finding challenges the conventional wisdom that post-reform real income …

larger has been the role of the declining share of household income in national income, which has occurred across …The Chinese government has recently focused on the need to increase consumption to rebalance the economy. A widely held … view is that despite China's remarkably high growth, the share of consumption in total expenditure has been low and …

attributed to biases in the price deflator. The estimated unmeasured income gains are higher for poorer households, implying … estimate the income growth implied by the evolution of food demand and durable good ownership in post-reform Brazil and Mexico …, and find that changes in consumption patterns are inconsistent with official estimates of near stagnant incomes. That is …

Household savings rates in the United States have recently crept up from all-time lows. Some have suggested that a … shift toward frugality will hamper GDP growth-the Keynesian "paradox of thrift." We estimate that households compensate for … a fall in their asset income by saving more out of their labor income, dollar-for-dollar. In the wake of the crisis, our …

income. We use household-level data to explain the postponing of consumption despite rapid income growth. Tracing cohorts …From 1995 to 2005, the average urban household saving rate in China rose by 7 percentage points, to ¼ of disposable … over time indicates virtually no consumption smoothing over the life cycle. Saving rates have increased across all …