standard permanent income model with intertemporally separable utility: the sensitivity of consumption to lagged consumer … sentiment and to predictable changes in current income I show that in a habit formation model the sensitivity of consumption … growth to predicted income can be to a large extent reinterpreted as a sluggish response of consumption to news Moreover the …

Abstract This paper shows that standard methods for estimating log-linearized consumption Euler equations using micro … simulated consumers behaving exactly according to the standard model. Furthermore, consumption growth for the simulated …-order approximation to the Euler equation. The paper concludes that empirical estimation of consumption Euler equations should be …

This paper studies why investors buy dividend-paying assets and how they time their consumption accordingly. We combine … administrative bank data linking customers' consumption transactions and income to detailed portfolio data and survey responses on … financial behavior. We find that private consumption is excessively sensitive to dividend income. Investors across wealth …

behaviour could thus imply a challenge to PIH-based standard models of consumption if it meant that a substantial share of … consumption to predictable income changes observed in Germany. …

This paper studies why investors buy dividend-paying assets and how they time their consumption accordingly. We combine … administrative bank data linking customers' consumption transactions and income to detailed portfolio data and survey responses on … financial behavior. We find that private consumption is excessively sensitive to dividend income. Investors across wealth …

This paper studies the consumption decisions of agents who face costs of acquiring, absorbing and processing … consumption plans. In between updating dates, they remain inattentive. This behaviour implies that news disperses slowly … throughout the population, so events have a gradual and delayed effect on aggregate consumption. The model predicts that …

This paper shows that standard methods for estimating log-linearized consumption Euler equations using micro data … consumers behaving exactly according to the standard model. Furthermore, consumption growth for the simulated consumers is very … the Euler equation. The paper concludes that empirical estimation of consumption Euler equations should be abandoned, and …