It has long been argued that the anticipations of some future event will impact current consumption and well-being in … model, by assuming that in addition to his own current consumption, an agentś current utility depends upon a reference … consumption level that is based on expected future consumption. Two alternative specifications of the anticipated future …

information on consumption, income and wealth, to structurally estimate a buffer-stock saving model. We exploit the information … contained in the joint dynamics of income, consumption and wealth to quantify the degree of insurance against income risk. The …

In this paper we analyze the relationship between unemployment and consumption. We study this relationship with panel … smaller consumption losses in Spanish and Italian households. We discuss this finding in the light of different market and … that credit and insurance markets are also more developed in the North than in the South, existing theories of consumption …

the resulting warming over the next decades and centuries highly uncertain. We quantify how this uncertainty changes the … making under uncertainty. It clarifies the distinct roles of risk aversion, prudence, characteristics of the damage … formulation, and future policy response. We show that an optimal response to uncertainty substantially reduces the risk premium. …

This paper shows that the combination of habit formation - present consumption creating additional consumption needs in …-best setting the optimal solution can be decentralized by a simple "Pigouvian" (paternalistic) consumption tax (along with suitable … lump-sum taxes). In a second-best setting, when personalized lump-sum transfers are not available, consumption taxes may …

response to the forecasts, extrapolate to expectations about their personal economic circumstances and adjust their consumption …

how subjective uncertainty is related to consumption behavior. Using unique data from the Survey of Consumer Expectations … uncertainty. In the workhorse consumption–savings model, augmented with risk heterogeneity, MPCs decline with earnings uncertainty …Earnings uncertainty is central to most heterogeneous-household models. Yet, there is surprisingly little evidence on …