While recently more and more research has focused on the aggregate response of consumption to income shocks, little is … known about how this response differs for households at different ends of the income distribution. This paper investigates … how consumption reacts to transitory and permanent shocks to disposable income for households with an income above or …

In the context of income dynamics, we investigate whether aspects of agents' superior information relative to the … econometrician cannot observe idiosyncratic shocks to both permanent and transitory components of income. In this case perceptions of … households. We find evidence of superior information consistent with standard income modelling. -- subjective expectation reports …

This paper empirically examines the relationship between income risk and mortgage instrument choice among Japanese … households. Since theoretical predictions about the impact of income risks on mortgage choice are mixed, it is important to … measures of income variability and unemployment risk that capture the income risk of the specific household. Our empirical …

alternative approach is to use the accounting identity that total household spending is equal to income plus capital gains minus … on income and wealth to other administrative data with information on financial and real estate transactions. Using this … second is a study of the transmission of income shocks to household consumption. …

We measure the extent of consumption insurance to income shocks accounting for high-order moments of the income … income shocks. Using PSID data, we estimate an asymmetric pass-through of bad versus good permanent shocks – 17% of a 3σ … income risk matters substantially for consumption …

Using detailed micro-data, this paper documents that households with lower income risk (and higher income levels …) exhibit a higher Marginal Propensity to Consume (MPC) in response to transitory income shocks, all else being equal. This … designed to account for the empirically observed negative correlation between income levels and income risk. This interaction …

We investigate whether US households possess advance information about their future income and what this means for … requires only panel data on consumption and income. Using the Panel Study of Income Dynamics, we find-in contrast to the … incomplete markets model and find that advance information reduces households' income forecast errors by 15%. Our estimation …

separation on measures reflecting the adequacy of food consumption in addition to more commonly studied income and expenditure … measures. Using panel data from France, I examine changes in disposable income, food expenditure and food quantities purchased …

income uncertainty from an ex ante point of view. Two different measures of subjective well being are under study …: Satisfaction with household income and the income evaluation question as developed by Van Praag. It can be shown that satisfaction … with income is more affected by ex ante than by ex post volatility of income. The ordinal version of the Van Praag approach …