This paper studies Pareto-optimal risk-sharing arrangements in a private information economy with aggregate uncertainty … consumption contingent on aggregate shocks in financial markets. The first result is that if aggregate and idiosyncratic shocks … aggregate states in which consumption is more volatile. For instance, this can provide an efficiency justification for the …

fully attend to consumption in all periods but fail to attend to some future lumpy expenditure opportunities. This asymmetry … reminders may increase saving, and that reminders will be more effective when they increase the salience of a specific …

economic shocks, and it also explores how people may react by changing their consumption, saving and investment, work and … work hours, consumption, saving, and equity exposure; later in life, they will work more, retire later, consume less … workers lost a substantial portion of their retirement saving. The financial sector implosion produced an economic crisis for …

movements in saving, spending, and debt in 2008. Because the rebate was large and distributed over a short period, it had a non …

parsimonious and quite tractable way. I illustrate the approach via a boundedly rational version of the consumption-saving life …

with liquidity w = W/Y . Additionally, financial frictions cause consumption to decrease with this endogenously determined … consumption and the dispersion of w. Permanent earnings shocks, especially large discrete stochastic jumps, make consumption …

We investigate optimal consumption, asset accumulation and portfolio decisions in a realistically calibrated life …

We provide new estimates of the importance of growth rate and uncertainty shocks for developed countries. The shocks we …

This paper studies consumption and labor supply in a model where agents have partial insurance and face risk and … consumption are solved for analytically. We prove that all parameters of the structural model are identified given panel data on … wages and hours, and cross-sectional data on consumption. The model is estimated on US data. Second moments involving hours …

forecasting regressions of consumption growth and returns by the price-dividend ratio and risk free rate, the model implies much … series moments of consumption and dividend growth. The results suggest that either some important state variable is missing …