consumption commitment for most households { their monthly rent or mortgage payment. I find that non-durable and food spending … weekly, biweekly and monthly income streams but the same timing of rent/mortgage payments have very similar consumption …

such state-dependent indivisible consumption opportunities influences a person’s risk attitudes. In general, people are not … risk averse anymore even if utility from divisible consumption is concave. I propose a definition of insurance in the …Some consumption opportunities are both indivisible and only valuable in particular tates of nature. The existence of …

nature. The existence of such state-dependent indivisible consumption opportunities influences a person's risk attitudes. In … general, people are not risk averse anymore even if utility from divisible consumption is concave. I propose a definition of …Some consumption opportunities, e.g. medical treatments, are both indivisible and only valuable in particular states of …

consumption insurance. Based on insights from a theoretical model, we propose a new test to detect advance information, which … requires only panel data on consumption and income. Using the Panel Study of Income Dynamics, we find-in contrast to the … incomplete markets model and find that advance information reduces households' income forecast errors by 15%. Our estimation …

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 …

.39%. In the cross-section of stocks, the consumption gap relates to the time-varying coefficients of a conditional CAPM …, suggesting that temporary consumption fluctuations track the price of market risk. This result leads to an empirical stochastic … consumption from its permanent level warranted by productivity—termed the consumption gap—comove with survey measures of consumer …

We document systematic and significant time variation in US lifecycle non-durable consumption profiles. Consumption … profiles have consistently become flatter: differences in consumption across generations have decreased. Pooling data across …-shaped consumption age profiles. The main driver behind lifecycle consumption variations are lifecycle income changes, which display …

Consumption growth is predictable, a basic violation of the permanent-income hypothesis. This paper examines three … possible explanations: rule-of-thumb behavior, in which households allow consumption to track per-period income flows rather … than permanent income; habit persistence; and non-separability in preferences over consumption and leisure. The data appear …

By how much do employed households reduce their consumption when the aggregate unemployment rate rises? In Spain during … consumption of more than 0.7% per equivalent adult. This reduction is the response of forward-looking agents to downward revisions … of their expectations on future income growth rates: the shadow of unemployment. Using consumption panel data that …