significantly larger drop in consumption than high-income households. Thus, consumption inequality increase after a pandemic shock … as pandemic shock. Based on daily forecasts of the number of fatalities, we construct the surprise component as the … difference between the actual and the expected number of deaths. We allow for state-dependent effects of the shock depending on …

consumption-saving behavior. We construct a novel consumption-saving model where the household must infer the persistent component … marginal propensity to consume because the short run covariance between income growth and consumption growth increases when … can be identified from panel data on income and consumption. Finally, we estimate a high degree of knowledge in the Panel …