Using detailed micro-data, this paper documents that households with lower income risk (and higher income levels …) exhibit a higher Marginal Propensity to Consume (MPC) in response to transitory income shocks, all else being equal. This … designed to account for the empirically observed negative correlation between income levels and income risk. This interaction …

Many factors inhibiting and facilitating economic growth have been suggested. Will international income data tell which … averaging and classical model selection procedures are sensitive to income differences across datasets. For example, many of the … 1975-1996 growth determinants according to World Bank income data turn out to be irrelevant when using Penn World Table …