. Finally, substantial crosscountry heterogeneity in marginal propensities to consume out of income and wealth components calls … decomposing disposable income into labour, property and transfer income is essential for understanding and forecasting consumption …

This paper examines whether biased income expectations due to overconfidence lead to higher levels of debt-taking. In a … lab experiment, participants can purchase goods by borrowing against their future income. We exogenously manipulate income … expectations by letting income depend on relative performance in hard and easy quiz tasks. We successfully generate biased income …

This paper examines whether biased income expectations due to overconfidence lead to higher levels of debt-taking. We …. Overconfident participants scale back their consumption after income feedback. However, they remain in higher debt at the end of the … prices of goods. Even though the expected income manipulation works less well in this experiment, debt-taking behavior is …

detailed survey and interviewer data from the German Socioeconomic Panel, considering a broad set of income and wealth outcomes. …