We propose an empirical implementation of the consumption-investment problem using the martingale representation … simplifies the investor's task of specifying the investment opportunity set and inherits the computational convenience of the … and probabilities, which generate variation in consumption, and the consumption smoothing induced by risk aversion. Using …

frequency variation in technology. News shocks are positively correlated with consumption, stock price, and consumer confidence …

financial assets, and measures of aggregate consumption for each of the geographic units over time. We estimate regression … models in levels, first differences and in error-correction form, relating per capita consumption to per capita income and … wealth. We find a statistically significant and rather large effect of housing wealth upon household consumption. This effect …

The last 15 years has brought forth an explosion of research on consumption-based asset pricing as a leading contender … for explaining aggregate stock market behavior. This research has propelled further interest in consumption-based asset … consumption-based asset pricing theories using formal estimation, hypothesis testing, and model comparison. In addition to …

two identification strategies to monthly household panel data, we find that consumption significantly responds to …

distribution of household consumption. The analysis integrates the labor economics literature on time variation in the wage … structure with the consumption insurance literature. In contrast to previous tests of consumption insurance, we examine the … longitudinal data with high quality information on both consumption and labor market outcomes, we draw upon the best available …

fully attend to consumption in all periods but fail to attend to some future lumpy expenditure opportunities. This asymmetry …

We document some key facts about aggregate consumption and its subcomponents over time. We then document the behavior … of some important determinants of consumption, such as consumers' expectations about their future income, and changes in … consumption during the Great Recession can be explained by the observed drops in wealth and income expectations …

A basic prediction of effcient risk-sharing is that relative consumption growth rates across countries or regions … sharing: episodes of high relative regional consumption growth are associated with regional real exchange rate depreciation …. Across countries however, the association is reversed: relative consumption and real exchange rates are negatively correlated …