aggregate private consumption. We find the effects to be economically relevant, especially when the lower bound is binding …

Macroeconomic models often invoke consumption "habits" to explain the substantial persistence of macroeconomic … consumption growth. But a large literature has found no evidence of habits in the microeconomic datasets that measure the behavior … aggregate consumption growth reflects consumers' imperfect attention to aggregate shocks. Our proposed degree of (macro …

loss. We find that an unexpected job loss leads to a negative consumption response, while this effect is muted for workers … with ex-ante job loss expectations - consistent with the Permanent Income Hypothesis. The negative consumption response to … factor of the consumption response to a job loss. At the same time, we do not find a positive consumption response of workers …