. We propose a novel consumption-savings model in which a consumer has a well-defined preference ordering over both …, households optimally choose a lumpy profile of memorable goods consumption even in a frictionless world. Using Consumer … cost of consumption fluctuations and conduct an excess-sensitivity test of the consumption response to predictable income …

-ante heterogeneity, income processes and asset structure, we show that the most important factor is the share and type of hand …-to-mouth households. One-asset models either feature a trade-off between a high average MPC and a realistic level of aggregate wealth, or … generate an excessively polarized wealth distribution that vastly understates the wealth held by households in the middle of …

individuals to make saving decisions; do they possess adequate financial literacy, are they informed about the most important … components of saving plans, do they even plan for retirement? This paper shows that financial illiteracy is widespread among the … levels of literacy that many individuals display, very few rely on the help of experts or financial advisors to make saving …

This paper characterizes heterogeneity of the beliefs of American households about future stock market returns … belief heterogeneity that is puzzling since households can observe the same publicly available information about the stock … imply. Our results also suggest that a substantial part of the reduced form relationship between stock holding and household …

Rising income inequality since the 1980s in the United States has generated a substantial increase in saving by the top … of the income distribution, which we call the saving glut of the rich. The saving glut of the rich has been as large as … the global saving glut, and it has not been associated with an increase in investment. Instead, the saving glut of the …

substitute for household optimization and that this is true even when there are information asymmetries, so that households know … by household optimization also arise in an economy with a rational planner who uses tools such as default savings and …Resource allocations are jointly determined by the actions of social planners and households. In this paper we …

This paper estimates a household saving rate equation for India and Korea using long-term time series data for the 1975 …-2010 period, focusing in particular on the impact of the pre-marital sex ratio on the household saving rate. To summarize the main … impact on the household saving rate in both India and Korea, even after controlling for the usual suspects such as the aged …

higher saving rate appears to reflect a considerable decline in household debt, with households paying down mortgage debt in … changes in household debt and savings during the 2007 recession. We find that while different segments of the population were …, the crisis' impact appears to have been widespread, affecting large shares of households across all age, income and …

expectations. Extrapolative income expectations help explain state-dependent household debt cycles qualitatively and quantitatively … high (low) income expectations relative to ex-post realizations after unexpected positive (negative) income shocks. These … extrapolative income expectations lead consumers to increase current spending, accumulate more debt, and face more defaults when …

studies of household saving decisions in general and of the savings decisions of wealthy or high-income households in … about entrepreneurial saving decisions and their role in household wealth accumulation. First, entrepreneurial households … returns on those investments) has important implications for the saving, investment, and entry decisions of continuing and …