Baumeister, Christiane; Kilian, Lutz; Zhou, Xiaoqing - 2017
asserts that the discretionary income effect on private consumption, which plays a central role in contemporary accounts of … suggests that the literature has too often confused the terms-of-trade effect with this discretionary income effect, and she … reasons than suggested by empirical models of the discretionary income effect. We review the main arguments in Ramey (2017 …