models with permanent and transitory earnings risk, and improves empirical estimates of consumption insurance against …

Using new transaction data I find that consumption is excessively sensitive to salient, predetermined, large and … nondurables and services. This excess sensitivity is very heterogeneous: The deviation from the standard consumption model is … largest for households for whom the loss from failing to smooth consumption is smallest in terms of equivalent variation. The …

played by informal care (IC), consumption sharing within households, and Medicaid in insuring this risk. We develop a life … spouses. Health evolves stochastically. Agents make consumption-savings decisions in a framework featuring an LTC state …

of the wealth distribution as well as the level and rise of consumption inequality over the life cycle …

of consumption/saving decisions, thereby enriching the determinants of aggregate demand and affecting the transmission of …