output changes. In the euro area investment is the predominant driver of output changes, while in the U.S. consumption shifts … several potential explanations for it. While the evidence seems to point at differences in consumption responses, rather than … investment, as the proximate cause for this fact, the source of the consumption difference remains a puzzle. …

Based on the householdsu0092 utility maximisation, a closed form approximation of the consumption function is derived … and the deep parameters of the consumption function are estimated using aggregate euro area data. The novel element in our … lot of information on future income changes, but that also lagged consumption, through habit formation, plays an important …

underlying model. To address this question, in this paper I estimate the New Keynesian IS curve for output and consumption and … consumption are mainly forward looking, and this is a very robust feature of the data. At the same time, I find little evidence in …

I investigate the effect of wealth on consumption in a new dataset with financial and housing wealth from 16 countries …. The baseline estimation method based on the sluggishness of consumption growth implies that the eventual (long … area economies, consumption only barely reacts to wealth elsewhere. The effect of housing wealth is somewhat smaller than …

This paper presents a simple new method for measuring `wealth effects' on aggregate consumption. The method exploits … the stickiness of consumption growth (sometimes interpreted as reflecting consumption `habits') to distinguish between …