We design an experiment to investigate the influence of announced future variations in interest rates and prices on consumption decisions. In an experimental implementation of the discounted utility model, the subjects learn the entire paths of inflation and interest rates prior to deciding on a...

We design an experiment to investigate the influence of announced future variations in interest rates and prices on consumption decisions. In an experimental implementation of the discounted utility model, the subjects learn the entire paths of inflation and interest rates prior to deciding on a...

While recently more and more research has focused on the aggregate response of consumption to income shocks, little is known about how this response differs for households at different ends of the income distribution. This paper investigates how consumption reacts to transitory and permanent...

Contrary to the implications of economic theory, consumption inequality in the US did not react to the increases in income inequality during the last three decades. This paper investigates if a change in the type of income inequality - from permanent to transitory - or a change in the ability to...

According to the German SAVE survey, more than 40 percent of households regularly save fixed amounts rather than flexibly adjusting savings to income variations as assumed by the Permanent Income Hypothesis (PIH). Fixed amount saving behaviour could thus imply a challenge to PIH-based standard...

According to the German SAVE survey, more than 40 percent of households regularly save fixed amounts rather than flexibly adjusting savings to income variations as assumed by the Permanent Income Hypothesis (PIH). Fixed amount saving behaviour could thus imply a challenge to PIH-based standard...

This paper investigates the determinants of migrants' financial transfers to their home country using German data.A double-hurdle model is applied to analyze the determinants of the propensity to send transfers abroad and the amount of transfers.The findings reveal that return intentions...

Overindebted private households have created economic and political concern. Using measures of relative (over-) indebtedness which relate household income and debt services to different concepts of subsistence levels, this paper investigates whether severe household indebtedness is driven by...

This paper examines the purpose of remittances using individual data of migrants in Germany. Particular attention is paid to migrants' savings and transfers to family members in the home country. Our findings indicate that migrants who intend to stay in Germany only temporarily have a higher...

The success of climate change measures is highly dependent on household behaviour as one of the most important emission sources of carbon dioxide. Private heating, electricity consumption or private transport are important key levers to reduce households' impacts on climate change. The paper...