This paper extends the theory of open economy consumption behavior by applying Flavin's (1993) excess sensitivity …

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. …

that in a habit formation model, the sensitivity of consumption to predicted income can be largely reinterpreted as a … sluggish response to news. Moreover, the sensitivity of consumption to sentiment reflects the serial correlation in consumption …

This paper observes the Turkish household’ consumption data to see whether it follows random walk or not. The quarterly … Turkish consumption pattern. …

State-level consumption exhibits excess sensitivity to lagged income to the same extent as US aggregate data, but state …-specific (idiosyncratic) consumption exhibits substantially less sensitivity to lagged stste-specific income - a result that also holds for … reaction of consumption to idiosynctratic disposable income shocks even if it fails at the aggregate US level. Further analysis …