wealth households. Only models of consumption which include precautionary savings motives can explain why poorer households …This paper examines the extent to which consumption in Russian households responds to exogenous income shocks. During … both reduce their consumption and increase their savings in response to an exogenous decline in income. …

This paper tests whether the Ricardian Equivalence proposition holds in a life cycle consumption laboratory experiment … not hold in general. Our results suggest that taxation has a significant and strong impact on consumption choice. Over the … life cycle, a tax relief increases consumption on average by about 22% of the tax rebate. A tax increase causes consumption …

We collect 2,735 estimates of the elasticity of intertemporal substitution in consumption from 169 published studies … participation substitute a larger fraction of consumption intertemporally in response to changes in expected asset returns. Micro …

This paper tests whether the Ricardian Equivalence proposition holds in a life cycle consumption laboratory experiment … not hold in general. Our results suggest that taxation has a significant and strong impact on consumption choice. Over the … life cycle, a tax relief increases consumption on average by about 22% of the tax rebate. A tax increase causes consumption …

Carroll and Kimball (1996) show that the consumption function for an agent with time-separable, isoelastic preferences … always exists a distribution of income risk such that consumption function is not concave in wealth. I also derive suffi … cient conditions guaranteeing that the consumption function is concave if the agent has preferences for late resolution of …

Using a macro quantile factor model, we examine cross-state (i.e., cross-quantile) heterogeneity in consumption … behaviors. We find that common macro factors generate a “big bang/crunch” effect on micro consumption. Generally speaking, when … the aggregate effect of the common factors on the consumption in low consumption-growth states is negative (resp. positive …

of temptation and commitment is identified using data on consumption, liquid assets, and housing wealth over the life … need for commitment. Preference for illiquidity has important implications for the consumption response to unexpected …, a finding that cannot be explained by current heterogeneous agent models, but that has great significance for fiscal …

income and consumption in panel data. I examine Blundell, Pistaferri and Preston (2008) as an important example for which … resolves the dissonance between the low partial consumption insurance estimates of Blundell, Pistaferri and Preston (2008) and …

Conventional estimators based on the consumption Euler equation, intensively used in studies of intertemporal … consumption behavior, produce biased estimates of the effect of children on the marginal utility of consumption if consumers face … children on the marginal utility of consumption. I estimate these bounds using the Panel Study of Income Dynamics and find that …

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 …