By means of a laboratory experiment, we show that, contrary to standard consumer theory, financially equivalent balance …

high (low) income expectations relative to ex-post realizations after unexpected positive (negative) income shocks. These … extrapolative income expectations lead consumers to increase current spending, accumulate more debt, and face more defaults when … defaultable unsecured debt and diagnostic Kalman filtering whereby consumers over-extrapolate income shocks when forming …

-looking questions about key risks to income, shedding light on the motives for household savings behaviour. The analysis finds that …

We use Iranian Household Expenditure and Income Survey to analyze the dynamics of consumption of the households. We …

and often have their credit limits reduced unexpectedly. Credit limit volatility is larger than most estimates of income …