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 …

We develop a consumption-based present value relation that is a function of future dividend growth. Using data on … aggregate consumption and measures of the dividend payments from aggregate wealth, we show that changing forecasts of dividend …

We estimate Euler equations for a number of countries and find that the excess sensitivity of consumption to current …

This paper uses household surveys from 13 developing countries to describe consumption choices, health and education … daily consumption per capita is between $2 and $4 or between $6 and $10. The data shed lights on differences and … have fewer, healthier, and better educated children. While there are clear differences in consumption patterns between the …

This paper investigates the causes of the Italian consumption bust of the early 1990s by estimating deviations from … 'normal' consumption using household level data for 1985-94. The data set used is a particularly rich, but as yet unexplored … households each year. The main findings are that the decline in consumption was larger for the working age households. The fall …

In this paper we analyse the relationship between unemployment and consumption. We study this relationship with panel … smaller consumption losses in Spanish and Italian households. We discuss this finding in the light of different market and … that credit and insurance markets are also more developed in the North than in the South, existing theories of consumption …

A method of testing the relative importance for consumption of full insurance behaviour and changes in income is … proposed and estimated using data across Canadian provinces. The focus of the estimation is less on whether or not the full … consumption. Both types of behaviour are found to be statistically significant, but the full insurance model is found to explain …

The paper evaluates the ability of asset pricing models that do not use consumption data, and models that use … consumption data as a proxy for true consumption, to explain the time-series and cross-sectional variation of expected returns of … portfolios of stocks. Although some parameter restrictions are rejected by models that do not use consumption data, we find that …

We simulate a buffer-stock model of consumption, explicitly aggregate over consumers, and estimate aggregate marginal …

min-max strategy against nature. When applied to a life cycle consumption problem, one finds a rationale for precautionary … saving and a larger sensitivity of changes in consumption to income innovations. It is also shown that consumers with …