I show that conventional estimators based on the consumption Euler equation, extensively used in studies of … intertemporal consumption behavior, produce inconsistent estimates of the effect of children on consumption if potentially binding … children on consumption using the Panel Study of Income Dynamics (PSID) for the US and high quality Danish administrative …

examine how the insurance coverage affects household consumption. Results show that, on average, the health insurance coverage … increases nonmedical-related consumption by more than 5%. This insurance effect is observed even in households with no out … reimbursement from the insurance program. The program within these villages stimulates less consumption among new participants than …

Although the link between household size and consumption has strong empirical support, there is no consistent way in … deterministic changes in household size and composition affect optimal consumption decisions. We show theoretically that the …. However, our quantitative analysis demonstrates that differences in predictions for consumption are negligible across models …

bias when these models are used to make predictions for aggregate consumption. In both a theoretical and a quantitative … exercise, we find that economies of scale in consumption inside the household are positively related to the bias introduced by … the single agent approach in predicted consumption profiles over the life-cycle. We also do an external validation …

data. In this paper, we study differences between consumption predictions from a single agent model and "adult equivalent …" consumption predictions from a model where household size evolves deterministically over the life-cycle and affects individual … preferences for consumption. Using a theoretical model we prove that, under mild conditions, these predictions are different. In …

Although the link between household size and consumption has a strong empirical support, there is no consistent way in … size and composition affect optimal consumption decisions. We provide theoretical results comparing both approaches and …

lifetime resources, on the current consumption and wealth accumulation of employees affected by the reform. In line with …

We evaluate the impact of increased income uncertainty and financial liberalisation in the US on consumption volatility … and household welfare. We estimate Euler equations and measure the volatility of unpredictable changes in consumption as … households. Consumption volatil-ity increased significantly over this period, especially for liquidity constrained households …

transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use CEX … repeated cross-section data on consumption and income to decompose idiosyncratic changes in income into predictable life … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …