The effects on consumption and retirement of characteristics of the life cycle, especially the length of the horizon …-cycle effects on consumption and retirement are estimated jointly for 1973 and 1975. There is a weak small effect of a more distant … reducing consumption; goods and leisure are consumed jointly, suggesting their complementarity in household production; and …

We investigate optimal consumption, asset accumulation and portfolio decisions in a realistically calibrated life …

We discuss recent developments in the literature that studies how the dynamics of earnings and wages affect consumption … choices over the life cycle. We start by analyzing the theoretical impact of income changes on consumption - highlighting the … contributions, distinguishing between papers that use only income data and those that use both income and consumption data. The …

We assess the degree of consumption smoothing implicit in a calibrated life-cycle version of the standard incomplete … the model have access to less consumption-smoothing against permanent earnings shocks than what is measured in the data …. BPP estimate that 36% of permanent shocks are insurable (i.e., do not translate into consumption growth), whereas the …

This paper studies consumption and labor supply in a model where agents have partial insurance and face risk and … consumption are solved for analytically. We prove that all parameters of the structural model are identified given panel data on … wages and hours, and cross-sectional data on consumption. The model is estimated on US data. Second moments involving hours …

cycle consumption in a general equilibrium overlapping generations model in which markets are otherwise complete. Empirical … studies find that consumption tends to rise early in life, peak around age 45-55, and to decline after that. Our calibrated … model exhibits life cycle consumption that is consistent with this pattern. This follows from the fact that, due to a lack …

elasticity of labor supply to the wage elasticity and (2) the degree of complementarity between consumption and labor. I bound … the degree of complementarity using data on consumption choices when labor supply varies randomly across states. Using …

must come at the price of lower consumption when young and the benefit of higher consumption when old. Indeed, for a … return means consuming almost two times more when old than when young. Measured as a share of lifetime consumption, the tax …

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

A striking feature of U.S. data on income and consumption is that inequality increases with age. Using both panel data ….98 and unity. The joint behavior of earnings and consumption inequality, interpreted using our model, adds to the body of …