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 …

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 …

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 …

stagnation of household consumption during the 1990s and find that the stagnation of household disposable income, the decline in …

simulate a generalization of the buffer-stock consumption model with longterm revolving debt contracts. In line with US credit …

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 …

positive impact on consumption (by reducing precautionary saving). Takeaways •The strength of the labour market and the rising …

simulate a generalization of the buffer-stock consumption model with longterm revolving debt contracts. In line with US credit …