This paper considers the intertemporal consumption/savings decision when income follows a random walk with drift and the drift coefficient is unknown. Instead agents are Bayesian learners, combining prior and sample information to form a posterior for the drift coefficient and future income....

In this paper I study a model of life-cycle consumption in which individuals react optimally to their own income process but ignore economy wide information. Since individual income is less persistent than aggregate income consumers will react too little to aggregate income variation. Aggregate...

Healthcare expenditure has increased substantially in all western industrialized countries in the last decades. The necessity to contain the increase in health care expenditure has motivated the Analysis of its determinants to explain differences across countries and health systems. However,...