This paper explores the extent to which financial liberalization in the euro area had a differentiated impact on members' private consumption patterns and in turn on their current account positions as a function of who got indebted in the first place. Theoretically, it builds on an...

In a recent paper (quot;A Primer on the Economics and Time Series Econometrics of Wealth Effects,quot; 2001), Davis and Palumbo investigate the empirical relation between three cointegrated variables: aggregate consumption, asset wealth, and labor income. Although cointegration implies that an...

This paper investigates consumption pattern of rural and urban households in Afghanistan. Over the years, the economy has undergone significant structural shifts. Millions of households have experienced dramatic welfare transformation causing substantial changes in the consumption pattern. The...

Households' and firms' subjective inflation expectations play a central role in macroeconomic and intertemporal microeconomic models. We discuss how subjective inflation expectations are measured, the patterns they display, their determinants, and how they shape households' and firms' economic...

Households are economic actors that play a significant role in the economic condition. Thus, households' consumption expenditures are a variable that deserves a through analysis in an economy. This study aims to identify the impact of financial technology on household consumption by using the...

This paper sheds light on an important causality which is of primary interest for policy makers, both at country level as well as broad institutional level, though it is largely ignored in the literature. Using panel data from a diversified group of countries and after controlling for various...

This paper revisits the personal expenditure tax (PET), the most prominent version of a progressive consumption tax. The PET has a long intellectual tradition in economics, and the merits and demerits of this alternative to the personal income tax have been discussed at length. What has been...

The consumption boom-bust cycle in the 2000s coincided with large fluctuations in the volume of home equity borrowing. Contrary to conventional wisdom, I show that homeowners largely borrowed for residential investment and not consumption. I rationalize this empirical finding using a calibrated...

I build a production-based continuous-time equilibrium model with Markov regime switches. The model is solved in closed-form and endogenously generates the following previously documented patterns: (1) Value stocks yield larger returns than growth stocks that cannot be reconciled by CAPM; (2)...

Electricity as a source of energy is vital to the growth and development of any economy. Its significance arises from the impact it has on infrastructure, a range of socio-economic activities and consequently on the country’s standard of living. This means that transportation, communication,...