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 …

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

This paper studies the empirical relationship between consumption and saving under two different sources of uncertainty … financial and environmental risks affect consumption. Moreover, we suggest a solution to some shortcomings which concern the …

This paper studies the empirical relationship between consumption and saving under two different sources of uncertainty …

. Second, I move one step further with respect to previous studies on consumption behaviour by taking explicitly expected …

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

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 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. …

Uncertainty concerning future income lowers consumption. This is often called the precautionary demand for savings. In … we have a set of variance series. Including the proxies in different specifications of the consumption function …, indication of precautionary saving can be found. No uncertainty would raise consumption by 4.9%. …