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 …

labor demand and the wage bargaining process. The analysis of the interaction of shock spillovers and benefit system focuses …

This paper examines the extent to which consumption in Russian households responds to exogenous income shocks. During … household which experiences an exogenous shock of 10% of its total income changes both its food and total non … wealth households. Only models of consumption which include precautionary savings motives can explain why poorer households …

In this paper we examine the link between wage inequality and consumption inequality using a life cycle model that … incorporates household consumption and family labor supply decisions. We derive analytical expressions based on approximations for … the dynamics of consumption, hours, and earnings of two earners in the presence of correlated wage shocks, non …

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 …

Using micro-level data, we examine the effects of Russia's 2001 flat rate income tax reform on consumption, income, and … assess the deadweight loss from personal income tax in the presence of tax evasion based on the consumption response to tax …

Consumption expenditure declines sharply at the time of retirement for many households, but the majority maintain a … smooth consumption path. A simple life cycle model with uncertainty about the time of retirement can account for this pattern … consumption expenditure at retirement generated by the model is zero, while the mean is negative, matching the HRS data. However …