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 …One of the basic motives for saving is the accumulation of wealth to insure future welfare. Both introspection and …

cycle, of several dimensions of economic inequality, including wages, labor earnings, income, consumption, and wealth. After … distribution. Consumption inequality increased less than disposable income inequality, and tracked the latter much more closely at …

transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use CEX … repeated cross-section data on consumption and income to decompose idiosyncratic changes in income into predictable life … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

conventional measures of insurance based on the response of non-durable consumption to income changes. The sign of this bias … depends critically on the persistence of the shock. We show that households have less insurance against transitory shocks and …In this paper we study the transmission of income shocks into nondurable consumption in the presence of durable goods …

We use all available waves of the Survey of Consumer Finances to document the evolution of the wealth distribution in …

We use data from the 2009 Internet Survey of the Health and Retirement Study to examine the consumption impact of … wealth shocks and unemployment during the Great Recession in the US. We find that many households experienced large capital … to consume with respect to housing and financial wealth are 1 and 3.3 percentage points, respectively. In addition, those …

The wealthy hand-to-mouth are households who hold little or no liquid wealth (cash, checking, and savings accounts … accounts). We use survey data on household portfolios for the U.S., Canada, Australia, the U.K., Germany, France, Italy, and …

'normal' consumption using household level data for 1985-94. The data set used is a particularly rich, but as yet unexplored …-cycle model of consumption in which there is a permanent and unexpected shock to lifetime income induced by the pension and other …This paper investigates the causes of the Italian consumption bust of the early 1990s by estimating deviations from …

payments (e.g. tax rebates) are spent on non-durable household consumption in the quarter that they are received. We develop a … a transaction cost. The optimal life-cycle pattern of wealth accumulation implies that many households are "wealthy hand …-to-mouth": they hold little or no liquid wealth despite owning sizable quantities of illiquid assets. They therefore display large …

positive wealth effect on labor supply is small and therefore the negative wealth effect on consumption is, somewhat …We document that an increase in government purchases generates a rise in consumption, the real and the product wage … challenge for a neoclassical model, which relies on the wealth effect on labor supply as the main channel of transmission of …