loss. We find that an unexpected job loss leads to a negative consumption response, while this effect is muted for workers … with ex-ante job loss expectations - consistent with the Permanent Income Hypothesis. The negative consumption response to … lower levels of liquid wealth. This supports the notion that the persistence of the unemployment shock is an important …

consumption commitment for most households { their monthly rent or mortgage payment. I find that non-durable and food spending … weekly, biweekly and monthly income streams but the same timing of rent/mortgage payments have very similar consumption …

This paper examines consumption decisions under risk assuming a prioritarian social welfare function, namely, a concave … transformation of individual utility functions. Under standard assumptions, there is always more current consumption under ex ante … risky future. In contrast, there is usually less current consumption under ex post prioritarianism than under utilitarianism …

consumption from its permanent level warranted by productivity—termed the consumption gap—comove with survey measures of consumer … sentiment and forecast stock returns in- and out-of-sample, subsuming other well-known consumption-based predictors. Using the … consumption gap to time the market, a mean-variance investor would achieve an annualized average certainty equivalent return of 2 …

We document systematic and significant time variation in US lifecycle non-durable consumption profiles. Consumption … profiles have consistently become flatter: differences in consumption across generations have decreased. Pooling data across …-shaped consumption age profiles. The main driver behind lifecycle consumption variations are lifecycle income changes, which display …

Consumption growth is predictable, a basic violation of the permanent-income hypothesis. This paper examines three … possible explanations: rule-of-thumb behavior, in which households allow consumption to track per-period income flows rather … than permanent income; habit persistence; and non-separability in preferences over consumption and leisure. The data appear …

supply significantly and that their customers reduced both borrowing and consumption relative to customers in non …-exposed banks. The credit supply channel can explain roughly one third of the decrease in aggregate private consumption observed in …

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 …

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 …