the expected variance of steady-state consumption increases and/or its expected value shifts downwards. …

the expected variance of steady-state consumption increases and/or its expected value shifts downwards. …

replicate the relations between growth and saving as seen in the data. However, adding utility from relative consumption to the …Prolonged rapid growth, i.e. a "catching-up" process, is known to be accompanied by high rates of household saving …

(positive) impact on households’ consumption (savings), even after we control for family income. We argue that people save to … consumption is stronger for poorer and younger people, and income inequality stimulates more education investment, which are …

This paper investigates household decisions when individual utility depends on a consumption reference level. The …, consumption externalities have no impact on steady state behavior, once labor supply is exogenous. In contrast, this paper argues … that --- once there is (exogenous) technological change --- consumption externalities always affect steady state behavior …

This paper analyzes the optimal consumption behavior of a consumer who faces uninsurable labor income risk and … borrowing constraints. In particular, it provides conditions under which the decision rule for consumption is a concave function … of existing assets. The current study presents two main findings. First, it is shown that the consumption function is …

times. It also brings significant welfare gains equivalent to almost one percent of the annual consumption. However, these …