that the distribution of measured consumption growth rates should be independent of variables that are exogenous to the … individual consumer when we allow for measurement error in consumption and for variation in preferences. This proposition is … tested by cross sectional regressions of individual consumption growth on a variety of variables that should not be …

private-sector consumption in the high-budget-deficit economy of Israel during the first half of the 1980s. The paper develops … and estimates an intertemporal optimizing model of consumption choice by finite-lived individuals. The evidence supports …

products are available, households select products better matched to their tastes. This delivers welfare gains from selection …

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 …

One of the important determinants of the response of saving and consumption to the real interest rate is the elasticity … of intertemporal substitution. That elasticity can be measured by the response of the rate of change of consumption to …

Consumption is the largest component of GDP. Since the 1950s, the life cycle and the permanent income models have … constituted the main analytical tools to the study of consumption behavior, both at the micro and at the aggregate levels. Since … the literature to estimate preferences is the lack of a consumption function.' A challenge for future research is to use …

This paper discusses the recent research on the consumption function that has attempted to relax the assumption of … lowers the level of consumption, increases the expected rate of growth of consumption, and increases the response of … consumption to news about income. Moreover, changes in the amount of uncertainty are a potentially important source of …

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 …

For thirty years, it has been accepted that consumption is smooth because permanent income is smoother than measured … measured income, so that the smoothness of consumption cannot be straightforwardly explained by permanent income theory … to permanent income should therefore be greater than the innovations to measured income, and changes in consumption …