accumulation in which households face idiosyncratic income risk and cannot commit to repay their debt. Therefore, even though a … equilibrium features imperfect insurance and a non-degenerate cross-sectional consumption distribution. When household labor … dynamics induced by unexpected technology shocks, including the evolution of the consumption distribution, in closed form. Thus …

In this paper we study the neoclassical growth model with idiosyncratic income risk and aggregate risk in which risk … pay off depending on both idiosyncratic and aggregate risk, but limited commitment rules out that households sell these … assets short. The model results, under suitable restrictions of the parameters of the model, in partial consumption insurance …

incomes, prices, and returns in ten-period consumption-saving decisions. Our findings reveal that dynamic optimization poses … inflation and compounding returns, marked by a pronounced tendency to over-smooth consumption …Additionally, we introduce a novel budgeting calculator designed to assist with consumption planning and to collect …

A significant source of risk arises from uncertainty concerning future government policy. Government action - - tax … preexisting rules. The effects of government relief - - compensation, grandfathering, phase-ins - - on ex ante incentives and risk …

entering the pandemic and those less able to earn while working from home each raised consumption more following receipt of …

When solving discrete-time consumption models with present-biased time preferences, backwards induction generates …

of theory and data …

beliefs about nominal debt and their own real net wealth. These changes in beliefs causally affect actual consumption and … hypothetical debt decisions. Our findings suggest that real wealth mediates the sensitivity of consumption to inflation once …

The consumption value of a durable good diminishes as it ages due to physical deterioration and consumers' preference … for the new. We develop a model of consumer specialization and trade in the market for used durables based on imperfect … consumers maximize utility by specializing in durables of differing ages. Consumers must trade to acquire their preferred …