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. …

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 state-specific income---a result that also holds for … reaction of consumption to idiosyncratic disposable income shocks even if it fails at the aggregate US level. Further analysis …

investigate the empirical relation between three cointegrated variables: aggregate consumption, asset wealth, and labor income … the following structural question about the short-run dynamics: "How quickly does consumption adjust to changes in income … in income or wealth have been realized. We argue here, however, that a statistical methodology different from that used …

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 …

Uninsurable income risk is often cited as an explanation for empirical deviations from the Lifecycle/Permanent-Income … estimating income uncertainty essentially measure the cross-sectional variance of a subpopulation rather than the true … income uncertainty. We measure income uncertainties as the variance of income forecasting errors at different ages and over …

log consumption, assets, and labor 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 …