persistence hypothesis, and (ii) to review thetheory of addiction with a focus on issues of relevance to the theory of consumption. …

This paper proposes an asymmetric model within which consumer credit facilitates both consumption smoothing and … rational habit modification. The model provides a better description of aggregate time series consumption data than competeting … models. In particular, the model can account for the various aggregate consumption anomalies that have led to repeated …

, and measures of aggregate consumption for each of the geographic units over time. We estimate regressions relating … consumption to income and wealth measures, finding a statistically significant and rather large effect of housing wealth upon … household consumption. …

countries. For EU countries, at the 1-year frequency, 13 % of shocks to GDP are smoothed via government consumption, 18 percent …

. Further, while during earlier parts of our sample both a slowdown in consumption and investment growth contribute to a … decomposition for consumption growth shows that the contribution of stock market volatility becomes negligible as we go from earlier …

We show that the hedging benefit of owning a home reduces the variability of housing consumption after a move. When a … consumption by about 11%. Households at the top end of the covariance distribution who are likely to have owned large homes before …

financial assets, and measures of aggregate consumption for each of the geographic units over time. We estimate regression … models in levels, first differences and in error-correction form, relating per capita consumption to per capita income and … wealth. We find a statistically significant and rather large effect of housing wealth upon household consumption. This effect …