-section data on income and consumption. Our focus is on the detection of changes in the magnitudes of variances of permanent and … transitory risks. A new approximation to the optimal consumption growth rule is developed. Evidence from a dynamic stochastic … environment. We examine robustness to unobserved heterogeneity in consumption growth and to unobserved heterogeneity in income …

stochastic simulation of consumption choices in a nonstationarity environment is used to show the robustness of the method for … decomposing income risk. The approach is used to investigate the changes in income risk in Britain across the inequality growth …

The nexus between debt and inequality has attracted considerable scholarly attention in the wake of the global … financial crisis. One prominent candidate to explain the striking co-evolution of income inequality and private debt in this … period has been the theory of upward-looking consumption externalities leading to expenditure cascades. We propose a …

A method to impute consumption expenditure inequality between wealth groups in the Survey of Consumer Finances is … increases in wealth inequality have passed through to consumption. Repeating this exercise in the Panel Study of Income Dynamics …

repeated cross-section data alone. Evidence from a stochastic simulation of consumption choices in a nonstationarity …