the rest of the economy via high unemployment and reduced labor earnings, which reduced household contributions to Social … economic shocks, and it also explores how people may react by changing their consumption, saving and investment, work and … both short- and long-term consumption, boost work effort, and defer retirement. Younger cohorts will initially reduce their …

consumption contingent on aggregate shocks in financial markets. The first result is that if aggregate and idiosyncratic shocks … result can be extended to dynamic settings in the sense that, in this case, only savings need to be distorted, but not trades … aggregate states in which consumption is more volatile. For instance, this can provide an efficiency justification for the …

parsimonious and quite tractable way. I illustrate the approach via a boundedly rational version of the consumption-saving life …

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 investigate optimal consumption, asset accumulation and portfolio decisions in a realistically calibrated life …

with liquidity w = W/Y . Additionally, financial frictions cause consumption to decrease with this endogenously determined … consumption and the dispersion of w. Permanent earnings shocks, especially large discrete stochastic jumps, make consumption …

responsive to unemployment when using regional variation. Low percentiles of both income and consumption are sensitive to … from the Current Population Survey and consumption data from the Consumer Expenditure Survey. This new evidence on the … poverty, examining alternative income poverty and consumption poverty, which have conceptual and empirical advantages as …

as unemployment, health and divorce explain much more of the variation. The results have important implications for …