This study investigates the patterns of consumptions among the classes of household. this class is characterized of two types of financial constraint households and non financial constraint households, in particular, according to the discussions of Zelde (1989), Kaplan et al. (2014), and Aguiar...

Households face earnings risk which is non-normal and varies by age and over the income distribution. We show that allowing for these rich features of earnings dynamics, in the context of a structurally estimated life-cycle portfolio choice model, helps to rationalize the limited participation...

The increasing availability of retail scanner data makes it possible to study consumer demand at more disaggregated levels than ever before. This paper derives the asymptotic properties for a tractable iterated three stage least squares (I3SLS) estimator and applies it to estimate a quadratic...

We develop a new dynamic continuous-time model of optimal consumption and investment to include independent stochastic labor income. We reduce the problem of solving the Bellman equation to a problem of solving an integral equation. We then explicitly characterize the optimal consumption and...

This paper uses schooling decisions to estimate curvature in utility of consumption in developing countries. We show that the elasticity of marginal utility of consumption (EMUC) can be recovered from three sufficient statistics: (1) the price effect of schooling; (2) the income effect of...

Objectives: Driven by the Dual Process Theory and the Theory of Consumption, the purpose of this paper is to provide a refined scale for luxury consumption motives in addition to categorising the motives into emotional and rational concepts. Methods/Approach: A non-probability convenience...