to a significant overestimation of consumption insurance and even more so at the bottom of the wealth distribution. … consumption insurance. Based on insights from a theoretical model, we propose a new test to detect advance information, which … requires only panel data on consumption and income. Using the Panel Study of Income Dynamics, we find-in contrast to the …

the financial wealth shock are larger if the youngest and/or oldest households are excluded. Results indicate that … responses to the wealth shock were stronger for those who became pessimistic about the stock market, and for those owners of … other factors) for consumption falls in Italy in 2007/08. …

A major difficulty faced by researchers who want to study the consumption and savings behavior of households is the … consumption expenditure to the assumptions made and the data used. We then compare our measures of household expenditure to those … second is a study of the transmission of income shocks to household consumption. …

and saved over time, and how households' marginal propensities to consume (MPCs) vary with household characteristics and … shock size. We fi nd that spending peaks in the year of winning and reverts to normal within five years. Controlling for all … profile of consumption responses and their systematic co-variation with observables …

to consume (MPCs). Our main contribution is to document how MPCs vary with household characteristics and prize size, and … of large prizes (USD 8,300 - 150,000) is slightly below one half. While the consumption responses we find are high, their … systematic relations with observables point toward well-understood mechanisms from existing theory and should be useful to …

to consume (MPCs). Our main contribution is to document how MPCs vary with household characteristics and prize size, and … motive can account for both the time profile of consumption responses and their systematic co-variation with observables …

and saved over time, and how households' marginal propensities to consume (MPCs) vary with household characteristics and … shock size. We find that spending peaks in the year of winning and gradually reverts to normal within five years … for both the time profile of consumption responses and their systematic co-variation with observables …

insurance mechanism against adverse income shocks and increases the welfare of a new born by 3.9 percent in consumption …In this paper, we differentiate consumption from expenditure by incorporating price search decision into an otherwise … standard life-cycle model. In our model, households can pay lower prices for the same consumption good if they allocate more …

. The consumers with low wealth and bad income shocks search more and pay less which makes their consumption higher than a …In this paper we introduce price search decision to a life cycle model, and differentiate consumption from expenditure … consumption is around 15% smaller than the cross sectional variance of expenditure through out the life cycle. Price search plays …

We use panel data from the Italian Survey of Household Income and Wealth from 1991 to 2016 to document empirically what … components, modest changes in consumption expenditures, and large changes in wealth. We then split the sample in households which … do not own business or real estate wealth, and households who do. For the first group, we find that consumption responses …