examples and then with an application to models of income dynamics. Using PSID data we estimate a simple dynamic model of … forecasting future income trajectories. …

assumptions about the marginal utility of income, which restricts income effects, demand curvature and pass-through. We show that … flexibly modeling income effects can be important, particularly if one is interested in the distributional effects of a policy … change, even in a market in which, a priori, the expectation is that income effects will play a limited role. We allow for …

In this paper we use the enhanced consumption data in the Panel Survey of Income Dynamics (PSID) from 2005-2017 to … explore the transmission of income shocks to consumption. We build on the nonlinear quantile framework introduced in Arellano …, Blundell and Bonhomme (2017). Our focus is on the estimation of consumption responses to persistent nonlinear income shocks in …

This paper studies the impact of permanent and transitory shocks to income on parental investments in children. We use … panel data on family income, and an index of investments in children in time and goods, from the Children of the National … partial insurance of parental investments against permanent income shocks, but the magnitude of the estimated responses is …