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 … its failure. Three branches of the literature have developed. The first relies on the durability of consumption to explain …

It can be claimed that education is simply a normal consumption good and that like all other normal goods, an increase … the consumption value of the good, since it is a non-saleable asset. This paper will attempt to determine empirically the …

We document some key facts about aggregate consumption and its subcomponents over time. We then document the behavior … of some important determinants of consumption, such as consumers' expectations about their future income, and changes in … consumption during the Great Recession can be explained by the observed drops in wealth and income expectations …

two identification strategies to monthly household panel data, we find that consumption significantly responds to …

fully attend to consumption in all periods but fail to attend to some future lumpy expenditure opportunities. This asymmetry …

We analyze the implications of household-level adjustment costs for the dynamics of aggregate consumption. We show that … an economy in which agents have "consumption commitments" 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 aggregate risk …

-signaling can potentially crowd out the effect of consumption utility on choices. Two large-scale, randomized controlled field …

Prosumers are becoming increasingly important in global energy consumption and production. We partner with an energy …-month period. As a policy instrument, we explore how simple nudges affect choices on both the consumption and production …