Wealth uncertainty may be resolved before consumption in which case consumption is optimal. But if uncertainty remains at the consumption level, after allocative decisions are made, ex post relative consumption is suboptimal. Therefore, ex ante the consumer has to balance attitudes to risk with...

The paper studies comparative statics in the classical consumer expenditure minimization problem, without recourse to differentiability and convexity assumptions. It extends the revealed preference approach by embedding the problem in a lattice theoretic framework. The analysis is discrete, the...

Much analysis in macroeconomics empirically addresses economy-wide incentives behind consumer/investment choices by using insights from the way a single representative household would behave. Heterogeneity at the micro level can jeopardize attempts to back up the representative consumer...

Most simulated micro-founded macro models use solely consumer-demand aggregates in order to estimate deep economy-wide preference parameters, which are useful for policy evaluation. The underlying demand-aggregation properties that this approach requires, should be easy to empirically disprove:...

Much analysis in macroeconomics empirically addresses economy-wide incentives behind consumer/investment choices by using insights from the way a single representative household would behave. Heterogeneity at the micro level can jeopardize attempts to back up the representative consumer...

Much analysis in macroeconomics empirically addresses economy-wide incentives behind consumer/investment choices by using insights from the way a single representative household would behave. Heterogeneity at the micro level can jeopardize attempts to back up the representative consumer...