This paper examines whether demographic variables and other household characteristics are more likely to affect the intercept of the Euler equation or the intertemporal elasticity of substitution of the household. Analysis of British data suggests that demographics affect the growth rate of...

This paper studies the paths from inequality in earnings to inequality in household consumption. We show that careful study of the evolution of the variances and covariances of earnings and consumption within cohorts across time can identify permanent and transitory shocks. We present an...