We simulate a buffer stock model of consumption at the individual level, aggregate, and estimate regressions on the … aggregated (simulated) data. Regressions of consumption on current (or lagged) disposable labor income—using the simulated …. Finally, we estimate aggregate regressions of consumption on current (or lagged) income, allowing the slope in these …

Consumption is partly a social activity, yet most studies of consumer behavior treat households in isolation. We … investigate familial relationships in consumption patterns using a sample of parents and their children from the Panel Study of … Income Dynamics. We find a positive and statistically significant parent-specific effect on children¹s consumption even after …

heterogeneous, leading to gambling. Second, in a consumption-saving problem with stochastic income, agents are both overconfident …

We solve in closed form the optimal consumption / portfolio choice problem for the class of isoelastic utility … the risky asset is always increasing in the investor's assessment of the conditional mean return whereas the consumption … fraction of wealth invested into the risky asset and the lower (higher) the consumption-wealth ratio exactly when the I.E.S. is …

. First, housing is explicitly modeled as both a consumption and investment good, as opposed to examining just one aspect in …

The strong consumption growth in a period of falling stock market and a moderate recession in the U.S. has sparked off … a debate about the role of housing wealth as one of the determinants of consumption. The literature is divided over the … issue whether the effect of change in the financial wealth on consumption is lower than the change in housing wealth. In …

We study empirically how close consumption-smoothing models employing present-value relationships fit data for Latin …-Test results for OLS estimates are consistent with consumption smoothing, while GLS are not. However, this last result contradicts … previous literature on this issue, which have found that Latin-American countries conform to consumption-smoothing models, with …

The purpose of this paper is to examine whether the stock wealth effect of consumption exhibits structural change(s) or … consumption in response to changes in stock wealth based on Hamilton's (2001) approach. When a nonlinear relation is discovered … asymmetry. It is of interest to policy makers whether the sensitivity of consumption to changes in households' financial wealth …