This paper is an attempt to answer the long standing question of whether more affluent households save a larger fraction of their income. The major difficulty in empirically assessing the relationship between incomes and saving rates is to construct a credible proxy for long-run income - purged...

It has been argued that rare economic disasters can explain most asset pricing puzzles. If this is the case, perceived risk associated with a disaster in stock markets should be revealed in household portfolios. That is, the framework that solves these pricing puzzles should also generate...

It has been argued that rare economic disasters can explain most asset pricing puzzles. If this is the case, perceived risk associated with a disaster in stock markets should be revealed in household portfolios. That is, the framework that solves these pricing puzzles should also generate...

This research investigated the relationship between increasing housing prices (or housing wealth) and the increased consumption expenditure of households from before the GFC and afterwards. The analysis revealed that following the GFC, old and middle-aged households showing slightly lower...

We develop a model for consumption and income that allows for pervasive heterogeneity and co-dependence between the structural parameters. This provides a comprehensive unifying framework to study income and consumption dynamics jointly. We estimate a full set of structural parameters that...