consumption-saving behavior. We construct a novel consumption-saving model where the household must infer the persistent component … marginal propensity to consume because the short run covariance between income growth and consumption growth increases when … can be identified from panel data on income and consumption. Finally, we estimate a high degree of knowledge in the Panel …

for consumption of the individual worker. However, most household panel surveys contain consumption information only at … the household level. We show that proxying individual consumption by household consumption biases estimated Frisch … elasticities downward as limited commitment in the household induces individual consumption to behave differently from household …

targeting household consumption and debt and might lead to regressive redistribution from low- to high …