dynamics together with persistent changes in consumption. The RE model extended with imperfect capital mobility by Shibata and … Shintani (1998) can account for persistent changes in consumption, but only at the cost of the explanatory power for the …) in which consumers are inattentive to shocks to their income and infrequently adjust their consumption. The SI model can …

This paper considers the implications of consumption and borrowing externalities in a small open economy framework. The … former reflect the assumption that status conscious agents care about the relative consumption of imported goods, while the …

The budget constraint requires that, eventually, consumption must adjust fully to any permanent shock to income …

Buffer-stock models of saving are now standard in the consumption literature. This paper builds theoretical foundations … proposition that aggregate consumption growth equals aggregate income growth in a small open economy populated by buffer stock …

economy is modeled as a continuum of identical representative agents who have preferences over consumption and status. In the … symmetric macroeconomic equilibrium is derived in which status is the source of transitional dynamics for consumption and the …

In our modified version of the small open economy Ramsey model, we assume that agents have preferences over consumption …-state values of net assets and consumption, the speed of convergence and, in particular, the direction of adjustment during the …

This paper considers the implications of consumption and borrowing externalities in a small open economy framework. The … former reflect the assumption that status conscious agents care about the relative consumption of imported goods, while the …

We estimate the degree of 'stickiness' in aggregate consumption growth (sometimes interpreted as reflecting consumption … habits) for thirteen advanced economies. We find that, after controlling for measurement error, consumption growth has a high … degree of autocorrelation, with a stickiness parameter of about 0.7 on average across countries. The sticky-consumption …