Economists conducting normative analyses of household financial decisions typically assume specific values of parameters of the household utility function. We review 12 normative analyses and discuss justifications for the personal discount rates assumed. None of the normative articles cited an...

Empirical studies have found that most households do not have recommended levels of emergency funds. A three-period model of optimal consumption is presented. The theoretical model suggests that many consumers without recommended levels of liquid assets may be acting rationally. The model is...

Which spouse is more knowledgeable about the household's finances in mixed‐sex married couple households? The answer to this question can be inferred from the Survey of Consumer Finances (SCF), which assigns the title of “respondent” to the person the household indicates is more...

An analysis of 6,113 households with four quarters of expenditure data in the 2004-2005 U.S. Consumer Expenditure Interview Survey found that 43% of households had outlays more than aftertax income, and 25% of households had outlays that were 127% or more of aftertax income. Black and...