Consumption and Saving: Models of Intertemporal Allocation and Their Implications for Public Policy

This paper provides a critical survey of the large literature on the life cycle model of consumption, both from an empirical and a theoretical point of view. It discusses several approaches that have been taken in the literature to bring the model to the data, their empirical successes, and their failures. Finally, the paper reviews a number of changes to the standard life cycle model that could help solve the remaining empirical puzzles.

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Year of publication:	2010
Authors:	Attanasio, Orazio P. ; Weber, Guglielmo
Published in:	Journal of Economic Literature. - American Economic Association - AEA. - Vol. 48.2010, 3, p. 693-751
Publisher:	American Economic Association - AEA

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Extent:	application/pdf
Type of publication:	Article
Notes:	DOI: 10.1257/jel.48.3.693
Classification:	D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving ; E21 - Consumption; Saving
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008680884