stochastic simulation of consumption choices in a nonstationarity environment is used to show the robustness of the method for …

repeated cross-section data alone. Evidence from a stochastic simulation of consumption choices in a nonstationarity …

the current and recent recessions. We show empirically that these saving spikes were short-lived and common to all working … times. We show that the rise in the aggregate savings ratio is driven by increases in uncertainty, rather than tightening of … credit; temporary shocks to the supply of credit generate increases in saving only among younger agents. …

consumption data. We develop a specific approximation to the optimal consumption growth rule and use Monte Carlo evidence to show …

This paper examines trends in household consumption and saving behaviour in each of the last three recessions in the UK …

-section data on income and consumption. Our focus is on the detection of changes in the magnitudes of variances of permanent and … transitory risks. A new approximation to the optimal consumption growth rule is developed. Evidence from a dynamic stochastic … environment. We examine robustness to unobserved heterogeneity in consumption growth and to unobserved heterogeneity in income …

The combination of credit constraints and indivisible consumption goods may induce some riskaverse individuals to play …