The U.S. consumption growth beta of an investment strategy that goes long in high interest rate currencies and short in … low interest rate currencies is large and significant. The price of consumption risk is significantly different from zero …, even after accounting for the sampling uncertainty introduced by the estimation of the consumption betas. The constant in …

We analyze the implications of household-level adjustment costs for the dynamics of aggregate consumption. We show that … an economy in which agents have ldquo;consumption commitmentsrdquo; is approximately equivalent to a habit formation … model in which the habit stock is a weighted average of past consumption if idiosyncratic risk is large relative to …

models are used to compute the distribution of utility-level water demand and revenues for any possible price schedule …

rate takes the form of an exactly loglinear consumption Euler equation, commonly assumed in New Keynesian models …Our new model of consumption-based habit formation preferences generates loglinear, homoskedastic macroeconomic …

, for example. This article focuses on two broader tools: consumption smoothing in anticipation of future losses, and …

We develop an equilibrium lifecycle model of education, marriage and labor supply and consumption in a transferable …

rate is low, automatable and non-automatable goods are more substitutable in consumption, and when traditional capital is a …

To what extent does household inequality affect the response of aggregate consumption to aggregate real shocks? We … drop in aggregate consumption in response to a negative aggregate real shock. We then move on to the Panel Study of Income … Dynamics (PSID) and Equifax data to quantify the fraction of people that are constrained in their consumption choices and to …

We show that New Keynesian models with frictionless labor supply face a challenge: given standard parameters, they …