Today's dominant strain of macroeconomic models supposes that aggregate consumption can be understood by assuming the … embarrassingly implausible (and empirically inaccurate) descriptions of consumption behavior. When push comes to shove, real …-world forecasters (including those at the Fed) properly disregard these implications. As a result, consumption forecasting remains very …

Buffer-stock versions of the dynamic stochastic optimizing model of saving are now standard in the consumption … models, including the existence of a target level of wealth and the proposition that aggregate consumption growth equals …

standard permanent income model with intertemporally separable utility: the sensitivity of consumption to lagged consumer … sentiment and to predictable changes in current income I show that in a habit formation model the sensitivity of consumption … growth to predicted income can be to a large extent reinterpreted as a sluggish response of consumption to news Moreover the …

information on consumption, income and wealth, to structurally estimate a buffer-stock saving model. We exploit the information … contained in the joint dynamics of income, consumption and wealth to quantify the degree of insurance against income risk … do not impose any model structure on the consumption process. This suggests that Italian households do not have access to …

Long-run saving dynamics are a crucial component of consumption-saving behavior. This paper makes two contributions to … the consumption literature. First, we exploit inheritance episodes to provide novel causal evidence on the long … our findings through the lens of a generalized consumption-saving framework, and show that life-cycle consumption models …

This paper examines trends in household consumption and saving behaviour in each of the last three recessions in the UK …

The combination of credit constraints and indivisible consumption goods may induce some risk-averse individuals to …