both reduce their consumption and increase their savings in response to an exogenous decline in income. …This paper examines the extent to which consumption in Russian households responds to exogenous income shocks. During … changes in household savings are negatively related to exogenous income shocks, with this relationship strongest for low …

economic shocks, and it also explores how people may react by changing their consumption, saving and investment, work and …-varying investment opportunities and countercyclical risky labor income dynamics. We show that households near retirement will reduce … both short- and long-term consumption, boost work effort, and defer retirement. Younger cohorts will initially reduce their …