functions with a habit then gives rise to a puzzle of consumption volatility in place of the asset pricing puzzles when agents … can choose consumption and labor optimally in response to more fundamental shocks. We show that the consumption reaction … to technology shocks are too small by an order of magnitude when a utility includes a consumption habit. Moreover, once a …

Micro data over the life cycle show different patterns for consumption for housing and non-housing goods: The … consumption profile of non-housing goods is hump-shaped, while the consumption profile for housing first increases monotonically … and then flattens out. These patterns hold true at each consumption quartile. This paper develops a quantitative, dynamic …

cycle, of several dimensions of economic inequality, including wages, labor earnings, income, consumption, and wealth. After … distribution. Consumption inequality increased less than disposable income inequality, and tracked the latter much more closely at …

This paper presents an analysis of the trends in inequality across income, earnings and consumption in Britain since …

wealth holdings are consistent with a rational life-cycle model of saving with uncertain lifetime and borrowing constraint …

saving in the U.S. for the 1897–1949 period using historical component series. I compare the qualitative and quantitative …-run bivariate relationship between the time series of investment and saving. Third, I also examine the short-run as well as the … cyclical relationships between the time series of investment and saving. The results reported in this paper indicate that there …