The goal of this chapter is to study how, and by how much, household income, wealth, and preference heterogeneity …, using data from the Panel Study of Income Dynamics, we document the patterns of household income, consumption and wealth …. Motivated by this evidence, we study several variants of a standard heterogeneous household model with aggregate shocks and an …

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

We use panel data from the Italian Survey of Household Income and Wealth from 1991 to 2016 to document empirically what … components of the household budget constraint change in response to shocks to household labor income, both over shorter and over … which include shocks to the value of household wealth are necessary to fully evaluate the sources and the consequences of …