Most of the empirical literature on consumption behaviour over the last decades has focused on estimating Euler … policy relevant issues. Alternatively, many papers have proposed using the consumption function to forecast behaviour. This … paper follows in this tradition, by deriving an analytical consumption function in the presence of intertemporal non …

extant research on consumption insurance find that people face substantial risks that they do not fairly pool. In theory, the … consumption and wealth accumulation of price-taking households in an economy with incomplete markets differs substantially from … this decomposition as an organizing framework to present four main findings: (a) the concavity of the consumption policy …

information, we adopt a two-step two-sample procedure. Estimation results, based on cross-section data for the year 2000, point to … a potentially substantial effect of job security perception on household’s nondurables consumption. Its actual … capability to prompt aggregate consumption adjustments is however likely to be very limited. …

We investigate the effect of positional goods (goods for which one's consumption relative to others’ matters) on saving …, based on results from a life-cycle consumption/saving experiment. In a Group treatment, we allow inter-personal comparisons … by assigning subjects to groups and displaying rankings based partly on consumption. A baseline Individual treatment is …

to consume out of financial wealth and raises the effective rate of discount in the aggregate consumption Euler equation …

The budget constraint requires that, eventually, consumption must adjust fully to any permanent shock to income …

The paper confronts a key implication of the precautionary model of saving/consumption, using micro-data on British … households. The results provide support for the key proposition that job insecurity affects consumption. A one standard deviation … increase in unemployment risk for the head of household is estimated to reduce consumption by 2.7 per cent. This effect is …

We simulate a buffer-stock model of consumption, explicitly aggregate over consumers, and estimate aggregate marginal …

This notes proposes an approximation to the consumption function in the buffer-stock model. …

We examine whether credit contributes to business cycle fluctuations by directly affecting consumption rather than … vertical and consumers face a credit ceiling. Using this assumption we find consumption growth depends on the interest rate … consumption in the late 1980s were more likely due to income revisions than financial deregulation per se. …