This paper estimates the importance of temptation (Gul and Pesendorfer, 2001) for consumption smoothing and asset … that the utility cost of temptation is one-quarter of the utility benefit of consumption. Further, we show that allowing for …

We specify and estimate a lifecycle model of consumption, housing demand and labor supply in an environment where …, education specific productivity shocks, and catastrophic consumption events, while bankruptcy is governed by the basic …

generations do not. Bringing together UK data on those born between the 1930s and 1980s and a lifecycle model of saving, I … patient. I quantify the implications of changing circumstances for consumption and welfare. Later-born generations are … predicted to have higher consumption, despite accumulating no greater wealth, than their predecessors because their earnings are …