This paper examines trends in household consumption and saving behaviour in each of the last three recessions in the UK … households to increase durable purchases. …

The standard approach to modelling consumption/saving problems is to assume that the decisionmaker is solving a dynamic … stochastic optimization problem However under realistic descriptions of utility and uncertainty the optimal consumption/saving … previously infeasible amounts of computation Yet empirical evidence suggests that household behavior conforms fairly well with …

Study of Income Dynamics) data. We study the implications of two processes for household, post-tax earnings in a standard … individual-pre-tax and household-post-tax earnings and across administrative (Social Security Administration) and survey (Panel …). Allowing for richer earnings dynamics implies a substantially better profit of the evolution of cross-sectional consumption …

presence of labor income uncertainty and credit constraints. Saving in the model is affected by the gap between 'target' and …We argue that the U.S. personal saving rate's long stability (1960s-1980s), subsequent steady decline (1980s-2007), and … recent substantial rise (2008-2011) can be interpreted using a parsimonious 'buffer stock' model of consumption in the …

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 …

effect is entirely driven by an increase in mortality among low income individuals, who are more likely to experience …

effect is entirely driven by an increase in mortality among low income individuals, who are more likely to experience …

We use a new panel dataset of credit card accounts to analyze how consumers responded to the 2001 federal income tax … credit card payments and thereby paying down debt. But soon afterwards spending increased, counter to the canonical Permanent-Income … $200 cumulatively over the nine months after rebate receipt, which represents over 40% of the average household rebate …

We provide evidence that the distributions of consumption, labor income, wealth, and capital income exhibit asymptotic … return heterogeneity lead to a mirror consumption concentration puzzle. We match the cross-sectional data on these four …

disaggregating household spending, income, saving, and debt between the bottom 95 percent and top 5 percent of the income …One might expect that rising US income inequality would reduce demand growth and create a drag on the economy because … higher-income groups spend a smaller share of income. But during a quarter century of rising inequality, US growth and …