It is widely claimed that housing wealth, as well as stock prices, have an impact on consumption and hence on aggregate … recent research in behavioral economics. Particular attention is paid to a model of the response of consumption to wealth …

In the early 1950s Modigliani, with Brumberg and Ando, formulated the life-cycletheory of consumption and savings that …

precautionary saving motive in a two-period model with Kreps-Porteus preferences. For small risks, we derive a measure of the … strength of the precautionary saving motive, which generalizes the concept of ‘prudence’ introduced by Kimball (1990b). For … large risks, we show that decreasing absolute risk aversion guarantees that the precautionary saving motive is stronger than …

ex-ante homeowners who rate (cash-out) refinance an existing loan to increase savings (consumption) are significantly …

"cash-out refinance" an existing loan to fund current consumption are significantly more likely to overestimate their house …

With 20 years of PSID data, we document persistent racial differentials in life-cycle consumption dynamics. Starting … from similar positions in the consumption distribution Blacks end up in lower percentiles than Whites. Education, income … the Whites to prevent them from falling in the lower part of the consumption distribution. …

We document relevant racial differences in the degree consumption insurance against shocks: Blacks appear to be less …

We study whether the level of household indebtedness is related to the interest rate elasticity of private consumption …. Looking at Finnish aggregate data, we find no robust evidence of increased interest rate elasticity of private consumption … period, which may have contributed towards muting the sensitivity of private consumption to interest rates even as aggregate …

precautionary saving motive in a two-period model with Kreps-Porteus preferences. For small risks, we derive a measure of the … strength of the precautionary saving motive, which generalizes the concept of ‘prudence’ introduced by Kimball (1990b). For … large risks, we show that decreasing absolute risk aversion guarantees that the precautionary saving motive is stronger than …

study of the social relationships of production, distribution, accumulation and consumption, among social classes with …