The budget constraint requires that, eventually, consumption must adjust fully to any permanent shock to income …

Buffer-stock models of saving are now standard in the consumption literature. This paper builds theoretical foundations … proposition that aggregate consumption growth equals aggregate income growth in a small open economy populated by buffer stock …

We estimate the degree of 'stickiness' in aggregate consumption growth (sometimes interpreted as reflecting consumption … habits) for thirteen advanced economies. We find that, after controlling for measurement error, consumption growth has a high … degree of autocorrelation, with a stickiness parameter of about 0.7 on average across countries. The sticky-consumption …

We estimate the degree of 'stickiness' in aggregate consumption growth (sometimes interpreted as reflecting consumption … habits) for thirteen advanced economies. We find that, after controlling for measurement error, consumption growth has a high … degree of autocorrelation, with a stickiness parameter of about 0.7 on average across countries. The sticky-consumption …

recent substantial rise (2008-2011) can be interpreted using a parsimonious buffer stock model of consumption in the presence …

.6 percentage points in Switzerland. The response of non-housing consumption in Switzerland is less heterogeneous across renters and …

This paper quantifies the extent of heterogeneity in consumption responses to changes in real interest rates and house …, observed in the Household Finance and Consumption Survey (HFCS) for these countries. We then show that the heterogeneity in … household finances implies that responses of consumption to changes in the real interest rate and in house prices differ …

. We then show that our contract economy is equivalent to a consumption-savings economy with one-period Arrow securities …