Current Population Survey, the Panel Study of Income Dynamics, the Consumer Expenditure Survey, and the Survey of Consumer … earnings, to disposable income, and, ultimately, to consumption and wealth. We document a continuous and sizable increase in … before 1982, but mitigate its increase thereafter. Taxes and transfers compress the level of income inequality, especially at …

We propose a novel approach to estimate household income uncertainty at various future horizons and characterize how … the estimated uncertainty evolves over the life cycle. We measure income uncertainty as the variance of linear forecast … errors conditional on information available to households prior to observing the realized income. This approach is …

The rise in within-group consumption inequality in response to the increase in within-group income inequality over the …

individual income data and assume that agents have to consume their endowment. I find that the model does not pass the Hansen and … Jagannathan test even for very volatile idiosyncratic income data. …

log consumption, assets, and labour income will be cointegrated. They conclude that this cointegrating relationship is …, assets, and labor income that are jointly consistent with an underlying budget constraint. By contrast, Lettau and Ludvigson …

Deaton (1986) has noted that if income is a first-order autoregressive process in first differences, then a simple … version of Friedman’s permanent income hypothesis (SPIH) implies that measured U.S. consumption is insufficiently sensitive to … innovations in income. This paper argues that this implication of the SPIH is a consequence of the fact that it ignores the role …