Motta, Giorgio; Tirelli, Patrizio - Dipartimento di Economia, Metodi Quantitativi e … - 2010
We show that the combination rule-of-thumb consumers and consump- tion habits dramatically aspects the dynamic … policy is the stabi- lization of the wage gap, the variable that drives consumption volatility for RT consumers. The …. Even a relatively small share of RT consumers is sufficient to generate a substantial increase in volatility. When the …