In an overlapping generations maximization framework with consumers, whose information on uncertain future income … realizations is front loaded, a closed form aggregate consumption function with CRRA preferences is derived. To have a closed form … life-time wealth and then the optimal consumption path. The derived model captures precautionary saving, which is dependent …

paths in medical expenses - can fully account for the steeper declines in nondurable consumption in the UK compared to the …

This paper finds declining consumption expenditure between paydays, for a typical household in the working population …

on how many hours to work with obvious consequences for the household budget. We therefore model consumption and labor …

able to take into account consumption dynamics. In the model, households derive utility from consumption, and they relate … their purchase behavior to consumption planning. We illustrate our model for yogurt purchases, and show that our model …

consumption-saving behavior. We construct a novel consumption-saving model where the household must infer the persistent component … that the degree of imperfect information has important consequences for the interpretation of transmission parameters to … marginal propensity to consume because the short run covariance between income growth and consumption growth increases when …