credit to finance consumption. Furthermore, workers seek to minimize the difference between investors’ and their own … consumption level. Qualitatively, an income redistribution from labor to capital leads to consumer credit dynamics that are in …

heterogeneity in the households exposure to different sectors in their consumption and labor choices. This heterogeneous exposure …

our model is consistent with two key features of aggregate consumption dynamics that are difficult to match with … representative agent models: (i) the sensitivity of aggregate consumption to predictable changes in aggregate income and (ii) the … relative smoothness of aggregate consumption. Second, we extend the model to feature capital-skill complementarity and show how …

our model is consistent with two key features of aggregate consumption dynamics that are difficult to match with … representative agent models: (i) the sensitivity of aggregate consumption to predictable changes in aggregate income and (ii) the … relative smoothness of aggregate consumption. Second, we extend the model to feature capital-skill complementarity and show how …

In this study, we set up a DSGE model with upward looking consumption comparison and show that consumption … credit to finance consumption. Furthermore, workers condition their consumption choice on the investors' level of consumption … credit moments, our proposed model significantly outperforms a model version in which we abstract from consumption …