If some consumers are liquidity-constrained, aggregate consumption should be `excessively sensitive' to credit …, the United Kingdom, Japan and France, we find a substantial impact of credit aggregates on consumption in all countries … considered. Moreover, the borrowing/lending wedge is a significant determinant of consumption in the United States, Canada and …

simulate a generalization of the buffer-stock consumption model with longterm revolving debt contracts. In line with US credit …

This paper addresses the credit card debt puzzle using a generalization of the buffer-stock consumption model with long …

of temptation and commitment is identified using data on consumption, liquid assets, and housing wealth over the life … need for commitment. Preference for illiquidity has important implications for the consumption response to unexpected …

Long-run saving dynamics are a crucial component of consumption-saving behavior. This paper makes two contributions to … the consumption literature. First, we exploit inheritance episodes to provide novel causal evidence on the long … our findings through the lens of a generalized consumption-saving framework, and show that life-cycle consumption models …

not clear cut. Contrary to the usual practice of considering the allocation of household income over consumption and …

simulate a generalization of the buffer-stock consumption model with longterm revolving debt contracts. In line with US credit …

Carroll and Kimball (1996) show that the consumption function for an agent with time-separable, isoelastic preferences … always exists a distribution of income risk such that consumption function is not concave in wealth. I also derive suffi … cient conditions guaranteeing that the consumption function is concave if the agent has preferences for late resolution of …

not clear cut. Contrary to the usual practice of considering the allocation of household income over consumption and …