an explicit role for unemployment and for household debt. We find that the model is capable of explaining several …This paper examines the relationship between household balance sheets, consumer purchases, and expectations. We find … few robust empirical relationships between balance sheet measures and spending, but we do find that unemployment …

expectations. Extrapolative income expectations help explain state-dependent household debt cycles qualitatively and quantitatively …

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 …

between expectations of future job losses and the subsequent impact that these expectations have on household consumption … important impact on household consumption smoothing following a job loss. The second part of the paper finds that although a job … loss significantly reduces household consumption, there is little evidence that the degree to which households anticipate …

luxury goods. Moreover, uncertainty reduces household propensity to invest in mutual funds. These results support the notion … that macroeconomic uncertainty can impact household decisions and have large negative effects on economic outcomes …

We use a new Canadian household survey to examine how inflation uncertainty influences inflation expectations and … inflation expectations and uncertainty reduce household spending on goods. Communicating inflation statistics with ranges …

unemployment. The novel feature is that the scope for sunspot-driven volatility depends on the level of household wealth. When …Periods of low household wealth in United States macroeconomic history have also been periods of high business cycle … wealth is high, consumer demand is largely insensitive to unemployment expectations and the economy is robust to confidence …

varied dramatically across regions. House prices, consumption and unemployment remain below pre-crisis levels in about half …