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In this paper we show how estimates of aggregate spending in the UK would be affected by using grossing weights that take account of the known dimensions of non-representativeness of the Family Expenditure Survey. Currently a uniform weighting scheme is used by the ONS. Having estiiuated a model...

Recent studies have found a negative relationship between voluntary labour market activity and the opportunity cost of time, measured by the individual's net wage. We argue that the observed negative relationship may be spurious if market and non-market labour supply are jointly determined. We...

Recent studies have explored the possibility that limited participation in asset markets, and the stock market in particular, might explain the lack of correspondence between the sample moments of the Intertemporal Marginal Rate of Substitution and asset returns. We estimate ownership...

Prices of real and financial assets fell substantially in the UK during 2008–09. The fourth wave of the English Longitudinal Study of Ageing (ELSA) was in the field throughout this ‘financial crisis’. We use these data and earlier ELSA waves first to document the effect of...

There is much debate over whether the life-cycle model of consumption can explain consumption growth patterns patterns observed in household level data sources. We argue that once one departs from simple classroom example, or 'stripped down life-cycle model', the empirical model for consumption...

In this paper we argue that only when one uses data and arguments relating to the life-time experiences of individuals or households within an economy can one understand recent trends and patterns in saving rates. Only within this framework is it sensible to design and analyse policies to...

In this paper we model the evolution ofincome risk and consumption growth.We decompose the time series innovation of the income process intoits common and cohort-specific components. From these we compute conditional variances which are used as separate risk terms in a consumptiongrowthequation....

There is much interest in the importance of 'precautionary saving' - the degree to which uncertainty affects household consumption behaviour. In this paper we use household level data on income and expenditure to analyse the importance of precautionary saving in the UK. Using the repeated...