We follow Fuhrer (2000) in estimating via Maximum Likelihood a log-linear consumption function on UK data. In doing so … habits look more internal in that they appear indexed to past average consumption of only a subset of (peer) consumers in the … economy, rather than total past per capita consumption. We also find that for about one seventh of UK consumers, current …

heterogeneous, aggregate investment is substantially less responsive to credit policy compared to an identical firm setting …

) augment dividend payments. This raises disposable income of households, who (at least temporarily) increase consumption. The …

show that the welfare effects of monetary policy over time depend significantly on the relative strength of the consumption …