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Do consumers really follow a rule of thumb? : three thousand estimates from 130 studies say "Probably Not"

Havránek, Tomáš; Sokolova, Anna - 2016

We show that three factors combine to explain the mean excess sensitivity reported in studies estimating consumption Euler equations: the use of macro data, publication bias, and liquidity constraints. When micro data are used, publication bias is corrected for, and the households under...

Persistent link: https://www.econbiz.de/10011515752

Using tax kinks to estimate the marginal propensity to consume

Gillitzer, Christian; Landersø, Rasmus; Skov, Peer; … - 2025

We show how tax kinks can be used to estimate the marginal propensity to consume (MPC). Tax kinks create discrete changes in the relationship between taxable income and disposable income, which - under a set of testable assumptions - enables causal identification of the spending response to...

Persistent link: https://www.econbiz.de/10015329554

Habit Persistence, Non-Separability between Consumption and Leisure, or Rule-of-Thumb Consumers : Which Accounts for the Predictability of Consumption Growth?

Kiley, Michael T. - 2007

Consumption growth is predictable, a basic violation of the permanent-income hypothesis. This paper examines three possible explanations: rule-of-thumb behavior, in which households allow consumption to track per-period income flows rather than permanent income; habit persistence; and...

Persistent link: https://www.econbiz.de/10014222407

Consumption Smoothing and Borrowing Constraints : Evidence from Household Surveys of Iran

Einian, Majid - 2019

We use Iranian Household Expenditure and Income Survey to analyze the dynamics of consumption of the households. We observe evidence of excess sensitivity in a cohort pseudo panel of Iranian households. Excess sensitivity, however, is absent for government employees who have better access to...

Persistent link: https://www.econbiz.de/10012903155

Disentangling financial constraints, precautionary savings, and myopia : household behavior surrounding federal tax returns

Baugh, Brian; Ben-David, Itzhak; Park, Hoonsuk - 2013

Analyzing account-level data from an account aggregator, we find that households increase consumption when they receive (expected) tax refunds, as if they face liquidity constraints. However, these same households smooth consumption when making payments in other years, primarily by transferring...

Persistent link: https://www.econbiz.de/10010227720

Consumption-savings decisions under upward looking comparisons : evidence from Germany, 2002 - 2011

Drechsel-Grau, Moritz; Schmid, Kai D. - 2013

We demonstrate that interpersonal comparisons lead to "keeping up with the Joneses"-behavior. Using annual household data from the German Socio-Economic Panel, we estimate the causal effect of changes in reference consumption, defined as the consumption level of all households who are perceived...

Persistent link: https://www.econbiz.de/10010190171

Habits and envy : what drives the consumption behavior of U.S. households?

Drechsel-Grau, Moritz; Schmid, Kai D. - 2013

In dieser Analyse schätzen wir den Einfluss von Gewohnheits-(Habits) gegenüber Vergleichsmotiven (Envy) zur Erklärung des Konsumverhaltens US-amerikanischer Haushalte. Wir verwenden Daten der seit August 2013 erhältlichen Konsumerhebungen des Panel Study of Income Dynamics (PSID) für den...

Persistent link: https://www.econbiz.de/10010201638

Liquidity constraints and the permanent income hypothesis : pseudo panel estimation with German consumption survey data

Beznoska, Martin; Ochmann, Richard R. - 2012

This paper empirically investigates the relevance of liquidity constraints and excess sensitivity in intertemporal household consumption. Using a pseudo panel that has been constructed on rich German consumption survey data, we estimate the consumption responses to permanent and transitory...

Persistent link: https://www.econbiz.de/10009579365

Housing habits and their implications for life-cycle consumption and investment

Kraft, Holger; Munk, Claus; Wagner, Sebastian - 2015

We set up and solve a rich life-cycle model of household decisions involving consumption of both perishable goods and housing services, stochastic and unspanned labor income, stochastic house prices, home renting and owning, stock investments, and portfolio constraints. The model features habit...

Persistent link: https://www.econbiz.de/10010482078

Non-parametric estimation of marginal propensities to consume : the case of regression splines

Jørgensen, Casper Nordal; Kuchler, Andreas - 2017

I papiret undersøges anvendeligheden af en ikke-parametrisk metode, en såkaldt regression spline, til estimation af …. This approach complements existing methods by relaxing a number of strong requirements on the part of the theory, otherwise … regression theory, the proposed method is somewhat data intensive. We use our proposed method to estimate the marginal propensity …

Persistent link: https://www.econbiz.de/10011696531