We have investigated the influence of fiscal instruments, notably taxes on income and government spending, on household … consumption in two different samples and two measures of household debt to provide a comprehensive analysis of the topic. We used … government spending or reduced taxes, in the presence of high indebtedness, actually discourage household consumption compared to …

across states shows that the rise in top income shares can explain almost all of the accumulation of household debt held as a … financial asset by the household sector. Since the Great Recession, the saving glut of the rich has been financing government …

We assess to which degree an international transfer mechanism can enhance consumption risk sharing as well as … analyze the changing dynamics that a EUBS brings about. We find that a EUBS can provide risk sharing by stabilizing relative …-spending shocks. Yet, since this trade-off between allocative efficiency and consumption risk sharing does not exist after certain …

Idiosyncratic labor risk is a prevalent phenomenon with important implications for individual choices. In labor market … research it is commonly assumed that agents have rational expectations and therefore correctly assess the risk they face in the …

asymmetric equilibrium featuring household specialization can arise. Examples where the asymmetric equilibrium is welfare …

cycle. Decreasing discounting helps a canonical life-cycle model to explain the household saving puzzles of undersaving when …

welfare maximizing tax structure. We calibrate the model to German household data and a 30 percent emission reduction goal … revenue via household-specific transfers is the first-best policy. Equal per-capita transfers do not suffer from informational …

of savings, precautionary savings, loss aversion, and risk. We provide the relevant theory, followed by empirical tests …