consumption insurance. Based on insights from a theoretical model, we propose a new test to detect advance information, which … requires only panel data on consumption and income. Using the Panel Study of Income Dynamics, we find-in contrast to the … incomplete markets model and find that advance information reduces households' income forecast errors by 15%. Our estimation …

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 …

.39%. In the cross-section of stocks, the consumption gap relates to the time-varying coefficients of a conditional CAPM …, suggesting that temporary consumption fluctuations track the price of market risk. This result leads to an empirical stochastic … consumption from its permanent level warranted by productivity—termed the consumption gap—comove with survey measures of consumer …

Recessions and expansions are often caused or reinforced by developments in private consumption - the largest component … cyclical component of consumption and an understanding of its drivers is essential. We estimate US cyclical consumption using a … cyclical consumption variable to that of univariate measures such as the recently introduced cc variable by Atanasov et al …

inverse of IES and on risk aversion but the first seems to play a more important role. The paper also attempts to understand …

producing human capital. We also demonstrate that this attenuation effect tends to concentrate generational consumption risk … into an i.i.d. generational consumption shock. In other words, each generation bears all of the risk associated with their …

I show that conventional estimators based on the consumption Euler equation, extensively used in studies of … intertemporal consumption behavior, produce inconsistent estimates of the effect of children on consumption if potentially binding … effect of children and a structural estimation strategy when households face constraints. Finally, I estimate the effect of …

Using detailed micro-data, this paper documents that households with lower income risk (and higher income levels … designed to account for the empirically observed negative correlation between income levels and income risk. This interaction … generates saving dynamics such that the stationary distribution of wealth among households facing different risk levels is not …