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 …

the basic Lifecycle/Permanent-Income Hypothesis, consumption roughly tracks income over the lifecycle and because of … can better explain the lifecycle consumption profile than the corresponding buffer-stock saving model …

mortality. Agents, confronted with a liquidity constraint, decide on their consumption level as well as their portfolio …"s level of habit, yet making sure that he does not endogenize the impact of his current consumption choice on tomorrow"s level …