This paper presents a model of consumption and household production that takes into account substitution between health … related to marriage markets that could help explain consumption, including demand for medical care and good nutrition. These …

consumption-saving behavior. We construct a novel consumption-saving model where the household must infer the persistent component … marginal propensity to consume because the short run covariance between income growth and consumption growth increases when … can be identified from panel data on income and consumption. Finally, we estimate a high degree of knowledge in the Panel …

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

loan to increase lifetime savings are significantly more likely to underestimate their house value, while homeowners who … "cash-out refinance" an existing loan to fund current consumption are significantly more likely to overestimate their house …

profit function rationalizing consumption, labor supply and savings is specified, estimated and used to test commonly … maintained separability hypotheses. Both consumption- labor and time separability are rejected. Cross-price Frisch elasticities … are found not to equal zero and this in turns affects all estimates of consumption, labor supply and saving elasticities …

(1988). The risk averse agent's savings play the role of a collateral, thereby improving consumption smoothing. Furthermore … savings and debt substitutable. If these assumptions are relaxed, consumption smoothing worsens but is still better than what …This paper studies the effect of combining different insurance schemes on the efficiency of consumption smoothing in an …

We study the optimal consumption behavior under the set of assumptions associated with the permanent income hypothesis …: quadratic utility function, discount rate equal to the interest rate. We modify the condition that savings be equal to zero at … infinity, and show that the simple linear consumption function is no more the optimal solution of the problem under free …

We extend the classic Merton (1969, 1971) problem that investigates the joint consumption-savings and portfolio … preferences as in Harris and Laibson (2013) and find closed-form solutions for Merton's optimal consumption and portfolio …