interestrate.The second part of the paper is concerned with the time-series representation of disposable income and with it … simplications for the behavior of consumption under the assumptions of the life-cycle model. If real disposable income is truly a … than innovations in income, a prediction that is manifestly false. Various possible resolutions of this problem are …

We review different empirical approaches that researchers have taken to estimate how consumption responds to income … changes. We critically evaluate the empirical evidence on the sensitivity of consumption to predicted income changes …, distinguishing between the traditional excess sensitivity tests, and the effect of predicted income increases and income declines. We …

This paper proposes and studies a theory of adaptive consumption behavior under income uncertainty and liquidity …

"This paper studies empirically the relationship between trade policy and individual income risk faced by workers, and … three steps. First, longitudinal data on workers are used to estimate time-varying individual income risk parameters in … various manufacturing sectors. Second, the estimated income risk parameters and data on trade barriers are used to analyze the …