Similar Search Results

Why Don't Households Smooth Consumption? Evidence from a 25 Million Dollar Experiment

Parker, Jonathan A. - 2015

This paper evaluates theoretical explanations for the propensity of households to increase spending in response to the arrival of predictable, lump-sum payments, using households in the Nielsen Consumer Panel who received 25 million in randomly-distributed stimulus payments. The pattern of...

Persistent link: https://www.econbiz.de/10013019110

On the Welfare Cost of Consumption Fluctuations in the Presence of Memorable Goods

Hai, Rong; Krueger, Dirk; Postlewaite, Andrew - 2021

changes. We find that (i) the welfare cost of household-level consumption fluctuations may be overstated by 1.7 percentage …

Persistent link: https://www.econbiz.de/10013222945

The Rise of Niche Consumption

Neiman, Brent - 2019

Over the last 15 years, the typical household has increasingly concentrated its spending on a few preferred products … heterogeneous household demand and use it to conclude that increasing product variety drives these divergent trends. When more … care more about generating new customers. Surprisingly, our model matches the observed trends in household and aggregate …

Persistent link: https://www.econbiz.de/10012865267

Consumption and Government-Budget Finance in a High-Deficit Economy

Leiderman, Leonardo; Razin, Assaf - 2021

This paper characterizes empirically how government budget variables, such as spending, taxes, and deficits, affected private-sector consumption in the high-budget-deficit economy of Israel during the first half of the 1980s. The paper develops and estimates an intertemporal optimizing model of...

Persistent link: https://www.econbiz.de/10013218734

A Test of Consumption Insurance

Cochrane, John H. - 2021

Are individuals effectively insured against idiosyncratic shocks to income or wealth by either formal or informal mechanisms? This paper shows that under perfect insurance, marginal utility should grow at the same rate for all consumers, and that the distribution of measured consumption growth...

Persistent link: https://www.econbiz.de/10013238724

Consumption

Hall, Robert E. - 2021

Macroeconomic research on consumption has been influenced profoundly by rational expectations. First, rational expectations together with the hypothesis of constant expected real interest rates implies that consumption should evolve as a random walk. Much of the research of the past decade has...

Persistent link: https://www.econbiz.de/10013240972

Consumption Demand

Attanasio, Orazio - 2021

Consumption is the largest component of GDP. Since the 1950s, the life cycle and the permanent income models have constituted the main analytical tools to the study of consumption behavior, both at the micro and at the aggregate levels. Since the late 1970s the literature has focused on versions...

Persistent link: https://www.econbiz.de/10013244108

Real Interest and Consumption

Hall, Robert E. - 2021

One of the important determinants of the response of saving and consumption to the real interest rate is the elasticity of intertemporal substitution. That elasticity can be measured by the response of the rate of change of consumption to changes in the expected real interest rate. A detailed...

Persistent link: https://www.econbiz.de/10013246671

Consumption : Beyond Certainty Equivalence

Blanchard, Olivier J.; Mankiw, N. Gregory - 2021

This paper discusses the recent research on the consumption function that has attempted to relax the assumption of certainty equivalence. While there remain many open questions, both theoretical and empirical, it is clear that the assumption of certainty equivalence can be misleading. Under more...

Persistent link: https://www.econbiz.de/10013230992

Consumer Spending and the Economic Stimulus Payments of 2008

Parker, Jonathan A. - 2011

We measure the response of household spending to the economic stimulus payments (ESPs) disbursed in mid-2008, using …

Persistent link: https://www.econbiz.de/10013131507

1
2
3
4
5
6
7
8
9
10
Next
Last