lower-than-expected incomes are realized. We assess the aggregate implications by estimating a consumption model with … expectations. Extrapolative income expectations help explain state-dependent household debt cycles qualitatively and quantitatively …

entering the pandemic and those less able to earn while working from home each raised consumption more following receipt of … lack of short-term spending contributed to strong household balance sheets as the direct economic effects of the pandemic …

We analyze the saving motives of European households using micro-data from the Household Finance and Consumption Survey … (HFCS), which is conducted by the European Central Bank. We find that the rank ordering of saving motives differs greatly … saving motive of European households when the proportion of households saving for each motive is used as the criterion to …

-homothetic consumption, and heterogeneous risk and time preferences. The method is composed of three steps. The first one allows for … protected from aggregate shocks than non-food consumption, after accounting for non-homotheticity. Village-level consumption … between the variation in measured consumption expenditures and cash-in-hand at the aggregate village level. Contrary to …

When solving discrete-time consumption models with present-biased time preferences, backwards induction generates …

assets short. The model results, under suitable restrictions of the parameters of the model, in partial consumption insurance … non-degenerate consumption- and wealth distribution. We use the tractability of the model to study, analytically …

beliefs about nominal debt and their own real net wealth. These changes in beliefs causally affect actual consumption and … hypothetical debt decisions. Our findings suggest that real wealth mediates the sensitivity of consumption to inflation once …

parent's credit access to the labor market outcomes of children in the U.S. We find that a 10% increase in parent's unused … revolving credit during their children's adolescence (13 to 18 years old) is associated with 0.28% to 0.37% greater labor … earnings of their children during early adulthood (25 to 30 years old). Using these empirical elasticities, we estimate a …