We estimate the degree of 'stickiness' in aggregate consumption growth (sometimes interpreted as reflecting consumption … degree of autocorrelation, with a stickiness parameter of about 0.7 on average across countries. The sticky …-consumption-growth model outperforms the random walk model of Hall (1978), and typically fits the data better than the popular Campbell and …

Buffer-stock models of saving are now standard in the consumption literature. This paper builds theoretical foundations … for rigorous understanding of the main features of such models, including the existence of a target wealth ratio and the …

recent substantial rise (2008-2011) can be interpreted using a parsimonious buffer stock model of consumption in the presence … of labor income uncertainty and credit constraints. Saving in the model is affected by the gap between target and actual … wealth, with the target determined by credit conditions and uncertainty. An estimated structural version of the model …

operations. The idea is applicable to many microeconomic and macroeconomic problems, including life cycle, buffer-stock, and …

This paper presents a simple new method for estimating the size of 'wealth effects' on aggregate consumption. The … method exploits the well-documented sluggishness of consumption growth (often interpreted as 'habits' in the asset pricing … neither theory nor evidence justifies faith in the existence of a stable cointegrating vector. …

We estimate the degree of 'stickiness' in aggregate consumption growth (sometimes interpreted as reflecting consumption … degree of autocorrelation, with a stickiness parameter of about 0.7 on average across countries. The sticky …-consumption-growth model outperforms the random walk model of Hall (1978), and typically fits the data better than the popular Campbell and …

American households have received a triple dose of bad news since the beginning of the current recession: The greatest … unemployment risk. We present measures of the size of these shocks and discuss what a benchmark theory says about their immediate … and ultimate consequences. We then provide a forecast based on a simple empirical model that captures the effects of …

We present a tractable model of the effects of nonfinancial risk on intertemporal choice. Our purpose is to provide a … most of the key implications of nonfinancial risk for intertemporal choice. …

We model the motives for residents of a country to hold foreign assets, including the precautionary motive that has … been omitted from much previous literature as intractable. Our model captures many of the principal insights from the … existing specialized literature on the precautionary motive, deriving a convenient formula for the economy's target value of …