The paper analyzes the impact of positive and negative income shocks on household consumption as part of checking the … to positive and negative changes in income is estimated with the inclusion of the existence of liquidity constraints. The …-fulfillment of the permanent income hypothesis.The article was written on the basis of the RANEPA state assignment research programme …

Consumption and income have both grown rapidly in Taiwan over the past forty years, with younger birth cohorts … predictions of the Permanent Income Hypothesis. We investigate the extent to which consumption theory can account for this trend … earnings risk. …

This paper reviews three important issues in the literature on international and intranational risk sharing. First, we … establish a comprehensive set of stylized facts for consumption risk sharing within and across countries. Consistent with the … output. As pointed to by Backus, Kehoe and Kydland (1993), this constitutes a violation of complete in-ternational risk …

This paper tests the prediction of the Permanent Income Hypothesis (PIH) that news about future income induce a … revision in consumption equal to the revision in permanent income. We use time-series data from 48 contiguous US states to …

(2005). We extend it by unemployment risk using Markov chains to model the transition between different employment states … systems as those established in the EU are able to offset the negative impact of unemployment risk on the portfolio … persistence. -- Precautionary savings ; unemployment insurance ; long-term unemployment ; income uncertainty …

This paper empirically investigates the effects of changes in the interest rate as well as transitory income … significant effects of precautionary savings on the consumption-savings decision. As a result of a doubling of transitory income …. -- Consumption-savings decision ; interest rate elasticity of savings ; income uncertainty …

frictions render labor-market risk countercyclical and endogenous to monetary policy. Our main result is that a majority of …