We examine the effects of decreasing down payment requirements on consumption volatility within a model which … consumption becomes more volatile as down payment requirements decrease. This finding is true for both individual and aggregate … consumption, and it is robust to the inclusion of adjustment costs. Transitional dynamics imply that a financial liberalization …

This notes proposes an approximation to the consumption function in the buffer-stock model. …

We argue that the equation commonly used in the estimation of the wealth effect on consumption might be unsuitable for … volatility increases. Estimation of a Markov-switching model of the usual long-run aggregate consumption equation provides …

among consumption, financial wealth, housing wealth and labor income (summarized by the variable cday) should help to … different assets; and (ii) the faster rate of convergence of the coefficients to the "long-run equilibrium" parameters. Unlike …

introduced into NNS models to try and reconcile the movements in interest rates, consumption and inflation. The key findings here … are that heterogeneity and wage inertia are needed to help reconcile these observations. Aggregate consumption and its … wages one periods in advance. When myopic households set wages in the current period, aggregate consumption and its expected …