The ratio of consumption to total household wealth (i.e., tangible assets plus unobserved human wealth) is commonly … relationship between consumption, assets and earnings (i.e., the variable "cay"). The evidence in favor of a stable cointegrating … unobserved component model applied to US data over the period 1951Q4-2016Q4. The regression of consumption on assets and earnings …

King, Plosser, Stock, and Watson (1991) depends mainly on the time-series behavior of the reduced form consumption residual …. A permanent income hypothesis interpretation of this finding is that consumption fully reflects the implications of long …-lived shocks for the common stochastic trend in consumption, investment, and output. Further, for the three variable model, shocks …

, consumption and investment. In this paper, we apply a structural vector autoregressive (SVAR) model to gain first insights that … general investment and consumption of longlived goods in the EMU core countries in order to be prepared to react on different …

, consumption and investment. In this paper, we apply a structural vector autoregressive (SVAR) model to gain first insights that … general investment and consumption of long-lived goods in the EMU core countries in order to be prepared to react on different …

negative if consumption grows slowly. The reasons for this change are straightforward, if underappreciated: (i) the value of …

This paper presents a laboratory experiment that directly tests the theoretical predictions of consumption choices … under rational inattention. Subjects are asked to select consumption when income is random. They can optimally decide to … of the theory: 1) Subjects optimally make stochastic consumption choices; 2) They respond to incentives and changes in …