significantly influence consumption dynamics. Our estimates of the indexes of relative risk aversion and relative prudence, as well … financial risks on consumption choices in the Mediterranean Region. The analysis is carried out using time series aggregate data …

During the Great Recession, the collapse of consumption across the U.S. varied greatly but systematically with house …-price declines. We find that financial distress among U.S. households amplified the sensitivity of consumption to house-price shocks …-estimated-dynamic model to measure the financial distress channel, we find that these two facts amplify the aggregate drop in consumption by 7 …

rates. The single agent, in a dynamic exchange economy, treats the conditional uncertainty about the consumption and … dividends next period as ambiguous. We calibrate the agent's ambiguity aversion to match only the first moment of the risk …

. While consumption significantly responds to transitory income shocks, out-of-pocket medical expenses do not. In contrast …, both consumption and out-of-pocket medical expenses respond to transitory health shocks. Thus, most U.S. elderly keep their … out-of-pocket medical expenses close to a satiation point that varies with health. Consumption responds to health shocks …

This paper studies the empirical relationship between consumption and saving under two different sources of uncertainty …: financial risk and environmental risk. The analysis is carried out using time series data for six advanced economies in the … period 1965-2007. The results support the theoretical conclusions that both financial risk alone and the interaction between …

spending on consumer spending. Our consumption data come from household-level retail purchases in Nielsen and auto purchases … spending by $0.29. We translate the regional consumption responses to an aggregate fiscal multiplier using a multi-region, New … multiplier, a result that distinguishes our incomplete markets model from models with complete markets. The aggregate consumption …

constraints that rule default out. Compared with the latter, the present approach appears to imply more consumption inequality. An … extended model with an infinite horizon, idiosyncratic risk and more realistic assumptions is used to demonstrate the general …