consumption data. We develop a specific approximation to the optimal consumption growth rule and use Monte Carlo evidence to show …

in a model with non-durable and durable consumption. The stock of the durable is exposed to risk against which households …-durable consumption. Introducing labor income risk into the model does not necessarily increase the importance of market insurance if the …

-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 …

transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use CEX … repeated cross-section data on consumption and income to decompose idiosyncratic changes in income into predictable life … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

recent substantial rise (2008-2011) can be interpreted using a parsimonious 'buffer stock' model of consumption in the …

recent substantial rise (2008-2011) can be interpreted using a parsimonious buffer stock model of consumption in the presence …

stochastic simulation of consumption choices in a nonstationarity environment is used to show the robustness of the method for …

We investigate the relevance of aggregate and consumer-specific income uncertainty for aggregate consumption changes in … the US over the period 1952-2001. Theoretically, the effect of income risk on consumption changes is decomposed into an … that aggregate income risk explains a negligible fraction of the variance of aggregate consumption changes. A more …