Based on the householdsu0092 utility maximisation, a closed form approximation of the consumption function is derived … and the deep parameters of the consumption function are estimated using aggregate euro area data. The novel element in our …

consumers face uninsurable earnings risk and borrowing constraints. We begin by characterizing the consumption function of … individual consumers. We show that consumption function is concave when the utility function has strictly positive third … strictly positive third derivative as special cases. We then show that when consumption function is concave, a mean …

An attempt is made in the present exercise to examine the empirical validity of the Keynesian consumption function for …

macroeconomics (bringing realism to Keynesian consumption function and consumption behavior), micro-economics (business behavior, the …