fully attend to consumption in all periods but fail to attend to some future lumpy expenditure opportunities. This asymmetry … expenditure. We find support for these predictions in three field experiments that randomly assign reminders to new savings …

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 …

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 …

concept driving savings decisions, consumption allocations, prices and return volatilities. Surprisingly, due to the … equilibrium risk sharing, the precautionary savings motive in the aggregate can vastly exceed that of even the most prudent actual … agent in the economy. Consequently, a low real interest rate, resulting from large aggregate savings, can prevail with …