This paper explores the microfoundations of consumption models and quantifies the macro implications of consumption … heterogeneity. We propose a new empirical method to estimate the response of consumption to permanent and transitory income shocks … than those that stand to gain. Following a 1-percentage-point interest rate increase, we estimate that consumption growth …

To predict the effects of the 2020 U.S. CARES act on consumption, we extend a model that matches responses of … households to past consumption stimulus packages. The extension allows us to account for two novel features of the coronavirus … likely be necessary if consumption spending is to recover …

We do not need to and should not have to choose amongst income, consumption, or wealth as the superior measure of well … for the same households, using income, consumption, and wealth from the 1989-2016 Surveys of Consumer Finances (SCF). The …

income and consumption in panel data. I examine Blundell, Pistaferri and Preston (2008) as an important example for which … resolves the dissonance between the low partial consumption insurance estimates of Blundell, Pistaferri and Preston (2008) and …

We econometrically estimate a consumption-based asset pricing model with stochastic internal habit and test it using … the distributed lag specification of consumption habit and consequently an additional shock to the marginal rate of …

. We consider two different models under which those shocks may affect consumption. In the first one, housing is a risky … asset. In the second one, housing has a role as a consumption and as an investment good. In both, changes in the rate of … house price appreciation may affect non-housing consumption. Shocks to appreciation rates may happen when increases in …

homes. However, very few eligible homeowners have used reverse mortgages to achieve consumption smoothing until recently …

after controlling for demographic variables. A prediction that the consumption decisions of older consumers are relatively …