transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use CEX … repeated cross-section data on consumption and income to decompose idiosyncratic changes in income into predictable life … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

Monitoring Survey (RLMS) for 1994-2005. We analyze cross-sectional income and consumption inequality and find that inequality … shocks. The response of consumption to permanent and transitory income shocks becomes weaker later in the sample, consistent …

This paper extends the standard model of life cycle consumption, saving and labor supply in a number of directions …. First, it argues that consumption should be defined as expenditure on household production as well as on market goods, that … is, we are interested in life cycle profiles of full consumption. If this is done, several well-known puzzles concerning …

decision to have children, life cycle time use and consumption decisions of households are determined by them and by public …

risks. Without income insurance, consumption rises during employment and falls during unemployment. Optimal employment … contracts offer severance compensation and sometimes give notice before dismissal. Severance compensation smoothes consumption … delay consumption falls to give incentives to the worker to search for another job. No dismissal delays are optimal if …