This paper describes the transmission of income inequality into consumption inequality and in so doing investigates the … degree of insurance to income shocks. It combines panel data on income from the PSID with consumption data from repeated CEX … found to play an important role in insuring permanent shocks. Adding durable expenditures to the consumption measure …

consumption data. We develop a specific approximation to the optimal consumption growth rule and use Monte Carlo evidence to show …

Recent theoretical contributions have suggested consumption externalities, or peergroup effects, as a potential … intertemporal consumption choice is a completely open question. To shed some light on the issue, we derive an extension of the … standard life-cycle model that allows for consumption externalities. The analysis is complicated by the challenge of …

This paper uses panel data on household consumption and income to evaluate the degree of insurance to income shocks …. Our aim is to describe the transmission of income inequality into consumption inequality. Our framework nests the special …-sectional distribution of consumption growth, and analyzing the way these two measures of household welfare correlate over time. We combine …

This paper compares consumption and income as measures of households' living standards using UK data. It presents … one gets about trends in the level and inequality of living standards in the UK when using consumption, and when one adds … composition of households with low living standards if these are identified with consumption rather than income. …

general panel date on total consumption from the intertemporal budget constraint. The distribution of consumption levels is … shown to closely match that estimated using the UK's household budget survey. Consumption transitions over time are then …

This paper examines trends in household consumption and saving behaviour in each of the last three recessions in the UK …

effect of wealth shocks on household consumption and individual expectations of the future. Many household experienced a …

In this paper we investigate the size of the consumption drop at retirement in Italy. We use micro data on food and … total non-durable household spending covering the period 1993-2004, and evaluate the change in consumption that accompanies … decision. We take a regression discontinuity approach, and make the identifying assumption that consumption would be the same …

-section data on income and consumption. Our focus is on the detection of changes in the magnitudes of variances of permanent and … transitory risks. A new approximation to the optimal consumption growth rule is developed. Evidence from a dynamic stochastic … environment. We examine robustness to unobserved heterogeneity in consumption growth and to unobserved heterogeneity in income …