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Are Consumers Planning Consumption According to an Euler Equation?

Dräger, Lena - 2017

Evaluating a new survey dataset of German consumers, we test whether individual consumption plans are formed according to an Euler equation derived from consumption life-cycle models. Estimating several consumption Euler equations, the results are mostly in line with the theory: We find evidence...

Persistent link: https://www.econbiz.de/10012964377

Conditional Volatility and Correlations of Weekly Returns and the VaR Analysis of 2008 Stock Market Crash

Pesaran, Bahram - 2013

making and risk management. Over the past three decades there has been a trend towards increased asset return correlations … models proposed in the literature can be used to formally characterize and quantify market risk. In particular, we ask how … adequate these models are for modelling market risk at times of financial crisis. In doing so we consider a multivariate t …

Persistent link: https://www.econbiz.de/10013094817

Anticipated Consumption and its Impact on Capital Accumulation and Growth : 'Forward-Looking' vs. 'Backward-Looking' Consumption Reference

Monteiro, Goncalo; Turnovsky, Stephen J. - 2021

It has long been argued that the anticipations of some future event will impact current consumption and well-being in advance of the occurrence of the event itself. This paper introduces this idea of anticipated pleasure into the Ramsey growth model, by assuming that in addition to his own...

Persistent link: https://www.econbiz.de/10013315651

Taxing Bequests and Consumption in the Steady State

Brunner, Johann K.; Pech, Susanne - 2021

We study the optimal tax system in a dynamic model where differences in wages induce differences in inheritances, and the transition from parent ability to child ability is described by a Markov chain. We characterize expected inheritances in the steady state and show that the Atkinson-Stiglitz...

Persistent link: https://www.econbiz.de/10013315698

The Effect of Unconventional Fiscal Policy on Consumption Expenditure

D'Acunto, Francesco - 2016

Unconventional fiscal policy uses announcements of future increases in consumption taxes to generate inflation expectations and accelerate consumption expenditure. It is budget neutral and time consistent. We exploit a unique natural experiment for an empirical test of the effectiveness of...

Persistent link: https://www.econbiz.de/10012981297

Lost in Translation : What Do Engel Curves Tell Us About the Cost of Living?

Almås, Ingvild - 2018

The Hamilton method for estimating CPI bias is simple, intuitive, and has been widely adopted. We show that the method confiates CPI bias with variation in cost-of-living across income levels. Assuming a single price index across the income distribution is inconsistent with the downward sloping...

Persistent link: https://www.econbiz.de/10012922658

The Consumption Effects of the 2007-2008 Financial Crisis : Evidence from Household-Level Data

Jensen, Thais - 2015

Did the financial crisis spread from distressed banks to households through a contraction of the credit supply? We study this question with a dataset that contains observations on all accounts in Danish banks as well as comprehensive information about individual account holders and banks. We...

Persistent link: https://www.econbiz.de/10013010472

Does Inequality Matter for the Consumption-Wealth Channel? Empirical Evidence

Arrondel, Luc - 2017

This paper studies the heterogeneity of the marginal propensity to consume out of wealth based on French household surveys. This heterogeneity is driven by differences in both wealth composition and wealth levels. We find a decreasing marginal propensity to consume out of wealth across the...

Persistent link: https://www.econbiz.de/10012944978

Non-Parametric Preprocessing for the Estimation of Equivalence Scales

Dudel, Christian - 2014

Empirically analyzing household behavior usually relies on informal data preprocessing. That is, before an econometric model is estimated, observations are selected in such a way that the resulting subset of data can be assumed to be sufficiently homogeneous with respect to the specific research...

Persistent link: https://www.econbiz.de/10013040004

The Nature of Risk Preferences : Evidence from Insurance Choices

Barseghyan, Levon; Molinari, Francesca; O'Donoghue, Ted; … - 2021

' risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions … important role in explaining the aversion to risk manifested in deductible choices. This finding is robust to allowing for …

Persistent link: https://www.econbiz.de/10013315858