among consumption, financial wealth, housing wealth and labor income (summarized by the variable cday) should help to …

on relative wealth preferences. In contrast to relative consumption preferences, they allow for the possibility that … agents work too little in the long run, while under both specifications the steady-state levels of consumption and the stock … unambiguously characterized by under-consumption and excessive work effort. The social optimum can be replicated by taxing capital …

We investigate possible determinants of the increase of household debt and smaller consumption fluctuations since the … the volatility of non-durable consumption. We then extend the model to unsecured debt, default and risk-sharing with …

expensive financial instruments. First, consumers may experience shocks to consumption needs like expenses for health care or … car repairs. These shocks could raise the marginal utility of consumption enough to account for borrowing at very high … interest rates. Second, consumers may have strong preferences for immediate consumption over consumption in the future. To test …

proposed technique that exploits the sluggishness of consumption growth. I argue that, compared to the widespread cointegration …