to consume (MPCs). Our main contribution is to document how MPCs vary with household characteristics and prize size, and … of large prizes (USD 8,300-150,000) is slightly below one half. While the consumption responses we find are high, their … systematic relations with observables point toward well-understood mechanisms from existing theory and should be useful to …

consumption via managing inflation expectations based on the Euler equation. Unconventional fiscal policy uses trivial … announcements of future consumer-price increases to boost inflation expectations and consumption expenditure on impact. Instead …

By means of a laboratory experiment, we show that, contrary to standard consumer theory, financially equivalent balance … large majority of subjects indeed have a bias in the perception of wealth, such that balance sheet composition matters: for … implies greater perceived wealth. The predominance of this bias is explained by low cognitive sophistication and great …

This paper studies the heterogeneity of the marginal propensity to consume out of wealth based on French household … on debt composition. Based on a simulation exercise, we find a limited effect of wealth shocks on consumption inequality … surveys. This heterogeneity is driven by differences in both wealth composition and wealth levels. We find a decreasing …

cycle. Decreasing discounting helps a canonical life-cycle model to explain the household saving puzzles of undersaving when … young and oversaving after retirement. Relative to the model with constant discounting, the model’s fit to consumption and …

We show that perceptions of relative rank in the wealth distribution shape individuals' willingness to take risks … categories when asking respondents about their wealth level. Respondents who are induced to perceive their relative position as …

across states shows that the rise in top income shares can explain almost all of the accumulation of household debt held as a … financial asset by the household sector. Since the Great Recession, the saving glut of the rich has been financing government …

This paper examines long-term trends in aggregate wealth and inheritance and in their distributions, focusing on … developed economies. A key stylized fact is that wealth is less equally distributed than income. Financial assets predominate … among the wealthy, while owner-occupied housing is crucial for middle groups, so higher stock prices raise wealth inequality …

testing has two counteracting effects on welfare. On the one hand, it improves consumption insurance by introducing state …We study asset-tested unemployment insurance in an incomplete markets model with moral hazard during job search. Asset … incentive to save and fewer private resources are used for consumption smoothing during unemployment. Our results show that in a …

Incomplete markets models imply heterogeneous household savings behaviour which in turn generates pecuniary … externalities via the interest rate. Conditional on differences in the processes determining household earnings for distinct groups … in the population, these savings externalities may contribute to inequality. Working with an open economy heterogenous …