consumption models, including a numerically solved precautionary savings model. We find that inter-country differences are …

, it is shown that government expenditures can cause a rise in private consumption, real wages, and employment if the … to decline. Households are willing to raise consumption if monetary policy is active, i.e. ensures that the real interest … rate rises with inflation. Otherwise, private consumption can also be crowded-out, as in the conventional case where …

consumption changes in the US over the period 1952-2001. Theoretically, the effect of labour income risk on consumption changes is … consumption changes. A more important part of aggregate consumption changes is explained by the unobserved component. The …