The consumption beta theorem of Breeden makes the expected return on any asset a function only of its covariance with … changes in aggregate consumption. It is shown that the theorem is more robust than was indicated by Breeden. The theorem … beliefs, (c) other assets can be traded without transactions costs and (d) that all assets have returns which are Ito …

It can be claimed that education is simply a normal consumption good and that like all other normal goods, an increase … the consumption value of the good, since it is a non-saleable asset. This paper will attempt to determine empirically the …

the dynamics of a country's growth, consumption, and sovereign debt, assuming that the government is myopic and wants to … higher steady-state household consumption than if it could not borrow. However, in a developing country that saves little … governments repress as well. This leads to a "growth trap" where household steady-state consumption is lower than if the …

fully attend to consumption in all periods but fail to attend to some future lumpy expenditure opportunities. This asymmetry …

We discuss recent developments in the literature that studies how the dynamics of earnings and wages affect consumption … choices over the life cycle. We start by analyzing the theoretical impact of income changes on consumption - highlighting the … contributions, distinguishing between papers that use only income data and those that use both income and consumption data. The …

consumption across states of nature, one must also consider the assets' effects on households' ability to smooth consumption over … returns correlate negatively with income shocks) even though the assets offer identical opportunities to smooth consumption … be substantial (above 1% of certainty-equivalent consumption), the assets we consider can only mitigate a relatively …

and consumption. Most integrated assessment models (IAMs) relate temperature to the level of real GDP and consumption, but … uncertainty over future temperature change and its impact? I address these questions by estimating the fraction of consumption …

We assess the degree of consumption smoothing implicit in a calibrated life-cycle version of the standard incomplete … the model have access to less consumption-smoothing against permanent earnings shocks than what is measured in the data …. BPP estimate that 36% of permanent shocks are insurable (i.e., do not translate into consumption growth), whereas the …

, there is considerable evidence in the data of time-varying expected consumption growth and volatility, (ii) The LRR model … matches the key asset markets data features, (iii) In the data and in the LRR model accordingly, past consumption growth does … not predict future asset prices, whereas lagged consumption in the habit model forecasts future price-dividend ratios with …