payments (e.g. tax rebates) are spent on non-durable household consumption in the quarter that they are received. We develop a … Finances. A version of the model parametrized to the 2001 tax rebate episode is able to generate consumption responses to …

Carroll and Kimball (1996) show that the consumption function for an agent with time-separable, isoelastic preferences … always exists a distribution of income risk such that consumption function is not concave in wealth. I also derive suffi … cient conditions guaranteeing that the consumption function is concave if the agent has preferences for late resolution of …

would increase aggregate consumption by 0.82 percent. Furthermore, we find that redistributing 1% of national disposable … from the top to the bottom decile of the income distribution would boost aggregate consumption by 0.1%. …

We review different empirical approaches that researchers have taken to estimate how consumption responds to income … changes. We critically evaluate the empirical evidence on the sensitivity of consumption to predicted income changes … restrictions that the theory imposes on the joint behavior of consumption and income growth, and combining realizations and …

economy will be small. In this paper, we quantify the direct effect on real consumption of (1) unanticipated changes in … evaluate the evidence for asymmetries in the response of real consumption that would be expected, for example, if shifting … price shocks on the consumption of new domestically produced automobiles, is consistent with the small share of the U …

and consumption go down as well. Governments can offset terror by putting tax revenues into the production of security …, at the level of the death toll by about the same size as due to car accidents, is expected to decrease annual consumption …

extant research on consumption insurance find that people face substantial risks that they do not fairly pool. In theory, the … consumption and wealth accumulation of price-taking households in an economy with incomplete markets differs substantially from … this decomposition as an organizing framework to present four main findings: (a) the concavity of the consumption policy …

This paper presents a model where aggregate consumption depends on both the level of wealth and the age structure of …

We develop a Keynesian model of aggregate consumption. Our theory emphasizes the importance of the relative income … hypothesis and debt finance for understanding household consumption behavior. It is shown that particular importance attaches to … savings by these households creates the potential for ‘sudden stops’ in consumption spending (and hence aggregate demand …