This paper sheds new light on the interactions between business cycles and the consumption distribution. We use … Consumer Expenditure Survey data and a factor model to characterize the cyclical dynamics of the consumption distribution. We … first establish that our approach is able to closely match business cycle fluctuations of consumption from the National …

This paper investigates how different income shocks shape consumption dynamics over the business cycle. First, we break … in aggregate consumption over the two most recent crises. We find that the income shocks experienced during the 2008 …, with the 2011-2012 shocks being perceived as more permanent. This helps explain why consumption falls less during the …

This chapter reviews empirical estimates of differential income and consumption growth across individuals during … recessions. Most existing studies examine the variation in income and consumption growth across individuals by sorting on ex ante … or contemporaneous income or consumption levels. We build on this literature by showing that differential shocks to …

states in the UI expansion to estimate the consumption response to extended UI benefits. We estimate that an additional week … of UI increased household consumption by a statistically significant 1.68 percent. Consistent with the hypothesis that … propensity to consume out of UI benefits in the range of 0.59-0.91, which is larger than existing estimates of the consumption …

spending shocks affect individuals differently over the life cycle. Young households increase their consumption after an … consumption. …

This paper examines trends in household consumption and saving behaviour in each of the last three recessions in the UK … households to increase durable purchases. -- Consumption ; Spending ; Recessions …

This paper examines the impact of changes in household wealth on homeowners' consumption behavior using recent panel … data of Japanese households. For an average household, we find the elasticity of consumption spending with respect to …' consumption responses are asymmetric; that is, the housing and financial wealth effects are substantially larger for households …

about 1980. To maintain stable debt to income, this group's consumption-income ratio needed to decline, which did not happen … consumption-income ratio for the bottom 95 percent did finally decline, consistent with tighter borrowing constraints, while the … top 5 percent ratio rose, consistent with consumption smoothing. We argue that higher inequality and the associated demand …

This paper investigates the role of subjective income expectations in shaping consumption dynamics of European … level. We then evaluate whether these calculated income shocks can help to explain contractions in aggregate consumption … over the two most recent crisis. We find strong evidence that consumption behavior during the 2012-2013 crisis can be …