consumption-saving behavior. We construct a novel consumption-saving model where the household must infer the persistent component … marginal propensity to consume because the short run covariance between income growth and consumption growth increases when … can be identified from panel data on income and consumption. Finally, we estimate a high degree of knowledge in the Panel …

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 …

We model consumption and labor supply behavior of a couple in a non-cooperative setting. Using minimal assumptions, we …

We propose a novel approach to model joint consumption decisions of individuals who care for each other. We assume non …-cooperative interaction between the different individuals and the within-group consumption outcome critically depends on the degree of caring … between the group members. By varying the degree of caring, the model encompasses a whole continuum of group consumption …

, there has been a tendency to increase the consumption of vegetables among Romanians, this being attributed to the increase …

proposed. These expectation adjustments generate highly heterogenous consumption responses to income windfalls: many households … previous explanations for these effects, including consumption adjustment cost and liquidity constraints. At the aggregate … level, consumption is less sensitive to expansionary policies during recessions and its excess smoothness varies …

We propose a representation of individual preferences with a subsistence requirement in consumption, and examine its … environmental services. We find that the Hicksian elasticity of substitution strictly monotonically increases with the consumption … of environmental services above the subsistence requirement, and approaches the standard CES value as consumption becomes …

This paper presents a laboratory experiment that directly tests the theoretical predictions of consumption choices … under rational inattention. Subjects are asked to select consumption when income is random. They can optimally decide to … of the theory: 1) Subjects optimally make stochastic consumption choices; 2) They respond to incentives and changes in …

We study the cyclical dynamics of consumption in the euro area (EA) and the large EA countries by distinguishing … cross-country heterogeneity in how different factors (including durable-specific ones) explain consumption; (iii) the … strength of spillovers from durable to nondurable consumption, as predicted by theory, is empirically correlated with how much …

preference theory. It measures willingness-to- pay for others’ consumption and willingness-to-pay for equality in consumption by … evaluating consumption externalities in monetary terms. We introduce an al- truism parameter and an inequality aversion parameter …