We propose an empirical implementation of the consumption-investment problem using the martingale representation … and probabilities, which generate variation in consumption, and the consumption smoothing induced by risk aversion. Using … options-implied information, we find quantitatively different optimal consumption and portfolio policies than those implied by …

equally large increase in consumption inequality. Most researchers have studied this question using data from the Consumer … Expenditure Survey (CE) and some studies have suggested that the increase in consumption inequality has been modest. Unfortunately … to which definitive conclusions can be made about the extent to which consumption inequality has evolved over the last …

This paper examines inequality in both leisure and consumption over the past four decades using time use surveys … that it gives us measures of consumption and leisure at the family level within a single data source. We find that leisure … consumption rises. However, the consumption-leisure gradient is small. We find noticeable differences across family types, with …

fundamental value of the house they own exceeds the present discounted value of their planned future consumption of housing … is no pure wealth effect on consumption from a change in house prices if this represents a change in fundamental value …. There is a pure wealth effect on consumption from a change in house prices if this reflects a change in the speculative …

implications for how aggregate labor supply responds to changes in taxes. In the first model, curvature in the utility from leisure … extent of curvature in the utility from leisure function …

In this paper we analyze income tax design in a two member household labor supply model where time spent on consumption … together by the two household members is valued differently from time spent apart. We treat consumption as a non excludable … jointly consumed, however, TV services are valued more highly than the same consumption undertaken separately. We use this …

recently have emphasized the importance of considering prior consumption commitments that constrain behavior. This research …

(relatively) tax complements to leisure and subsidize substitutes because doing so helps to offset the distorting effect of …, Atkinson and Stiglitz (1976) claim to have demonstrated the opposite, that goods complementary with leisure should quot … that the optimality of relatively taxing leisure complements is indeed correct, and conflicting results are explained …

, and public goods. Standard theory, which supposes that persons want more income and more leisure, does not predict how …The merits of alternative income tax policies depend on the population distribution of preferences for income, leisure … beyond the presumption that persons prefer more income and leisure. This shows that observation of a person's labor supply …