We present the optimal consumption and investment strategy for an investor,endowed with labor income, searching to maximize utility from consumption and terminalwealth when facing a binding capital constraint of a European (constraint on terminal wealth)or an American (constraint on the wealth...

Recent advances on the identification of the Berry, Levinsohn and Pakes (BLP, 1995) random coefficient demand models focus on the structural demand functions. Yet, this does not automatically imply the identification of the distribution of the random coefficients. The latter is often necessary...

We document systematic and significant time variation in US lifecycle non-durable consumption profiles. Consumption profiles have consistently become flatter: differences in consumption across generations have decreased. Pooling data across different periods to identify lifecycle profiles masks...

This article examines the meaning of consumers' sovereignty in the interwar thought of the economist William Harold Hutt. For Hutt, consumers' sovereignty was an ideal, a norm against which economists could assess different economic systems. It connected the value of individual freedom, the...

Mankiw's puzzle of long-term (durable) consumption is a significant topic that needs to be solved. We statistically analyze a time series sample from Germany and from the Czech Republic (2004Q1 to 2016Q4). Furthermore, we discussed the analyses that have been performed to date for the USA and...

We document four features of consumption and income microdata: (1) household-level consumption is as volatile as household income on average, (2) household-level consumption has a positive but small correlation with income, (3) many low-wealth households have marginal propensities to consume...