Showing 1 - 10 of 1,007
the aggregate effect of the common factors on the consumption in low consumption-growth states is negative (resp. positive …), this effect in high consumption-growth states is positive (resp. negative). The big bang/crunch suggests that consumption …
Persistent link: https://www.econbiz.de/10013236598
utility. We empirically find that asset returns correlate negatively with many individuals' low-quantile consumption growth …. This new model explains both the low covariance between consumption growth and stock returns and a high equity premium …
Persistent link: https://www.econbiz.de/10013244255
quantiles of consumption growth and asset returns, for which we find evidence from micro-level consumption data. The ``partial …" negative correlation accounts for the low correlation between consumption growth and asset returns, which is at the heart of …
Persistent link: https://www.econbiz.de/10013307483
likely reduces aggregate consumption and limits economic growth …
Persistent link: https://www.econbiz.de/10012872094
This paper employs Swedish data on households' stock holdings to investigate how consumption responds to changes in stock market returns. We instrument the actual capital gains and dividend payments with past portfolio weights. Unrealized capital gains lead to a marginal propensity to consume...
Persistent link: https://www.econbiz.de/10012853088
This paper employs Swedish data on households' stock holdings to investigate how consumption responds to changes in stock market returns. We instrument the actual capital gains and dividend payments with past portfolio weights. Unrealized capital gains lead to a marginal propensity to consume...
Persistent link: https://www.econbiz.de/10012925516
marginal propensity to consume because the short run covariance between income growth and consumption growth increases when …
Persistent link: https://www.econbiz.de/10012928282
The revolving credit available to consumers changes substantially over the business cycle, life cycle, and for individuals. We show that debt changes at the same time as credit, so credit utilization is remarkably stable. From ages 20–40, for example, credit card limits grow by more than 700...
Persistent link: https://www.econbiz.de/10012931109
This paper studies household spending responses to anticipated changes in the consumption tax. To do so, I construct a life-cycle heterogeneous-agent general equilibrium model with durables. The model features a wedge in durable transactions that reflects the actual consumption tax system:...
Persistent link: https://www.econbiz.de/10012581525
We study the mortgage cash flow channel of monetary policy transmission under fixed-rate mortgage (FRM) versus adjustable-rate mortgage (ARM) regimes by comparing the United States with primarily long-term FRMs and Spain with primarily ARMs that automatically reset annually. We find a robust...
Persistent link: https://www.econbiz.de/10012626226