We use responses to survey questions in the 2010 Italian Survey of Household Income and Wealth that ask consumers how … much of an unexpected transitory income change they would consume. The marginal propensity to consume (MPC) is 48 percent … much higher MPC than affluent households, which is in agreement with models with precautionary savings, where income risk …

-separabilities, "superior information", and income shocks of different nature, both transitory and permanent. The results provide evidence for …

Recent research has documented that income inequality in the United States has increased dramatically over the prior … three decades. There has been less of a consensus, however, on whether the increase in income inequality was matched by an … Panel Study of Income Dynamics to explore the dynamics of alternative measures of consumption inequality. All of our …

, in the presence of idiosyncratic income uncertainty. We first characterize how the extent of uncertainty bears … durable goods and subjective measures of future income uncertainty. The data feature two conceptually distinct sources of …

This paper examines the link between income and consumption inequality. We create panel data on consumption for the … Panel Study of Income Dynamics using an imputation procedure based on food demand estimates from the Consumer Expenditure … Survey. We document a disjuncture between income and consumption inequality over the 1980s and show that it can be explained …

partial equilibrium under imperfect insurance. In this paper the assumption of i.i.d. income innovations used in previous … empirical studies is removed and the focus of the analysis placed on models for the conditional variance of income shocks, that … earnings determination that separate income shocks into idiosyncratic transitory and permanent components. We allow for …