We present a macroeconomic model calibrated to match both microeconomic and macroeconomic evidence on household income … dynamics. When the model is modified in a way that permits it to match empirical measures of wealth inequality in the U.S., we … how the shock is distributed across categories of households (e.g., low-wealth versus high-wealth households) …

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 …

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 …

provided, allowing for measurement error that is correlated with income and wealth. Identification is derived from observing … increases in wealth inequality have passed through to consumption. Repeating this exercise in the Panel Study of Income Dynamics …A method to impute consumption expenditure inequality between wealth groups in the Survey of Consumer Finances is …