Consumption is the largest component of GDP. Since the 1950s, the life cycle and the permanent income models have … constituted the main analytical tools to the study of consumption behaviour, both at the micro and at the aggregate level. Since … the literature to estimate preferences is the lack of a ‘consumption function’. A challenge for future research is to use …

In this paper we consider conditions under which the estimation of a log-linearized Euler equation for consumption … conditional variance of consumption growth are uncorrelated with the instruments typically used in estimation. We perform a … of consumption growth, which, except when the discount factor is very high, is remarkably flat. This implies that claims …

household consumption in Mexico during the 1990s, which is a period characterized by high volatility. In addition to performing … consumption categories: non-durable goods, durable goods, education and health. Our results for non-durable goods consumption … reject the hypothesis that Mexican households are able to insure idiosyncratic risk. For the comparisons across consumption …

In this paper we estimate the effect of the Mexican conditional cash transfer program, Oportunidades, on consumption … to induce many eligible households to participate, and find positive effects on consumption. …

Previous empirical literature has found a sharp decline in consumption during the first years of retirement implying … that individuals do not save enough for their retirement. This phenomenon has been called the retirement consumption puzzle …. In contrast to some of the previous studies, the authors find no evidence of the retirement consumption puzzle during the …