housing crash from 2006 to 2011 and its implications for aggregate and cross-sectional consumption during the Great Recession … consumption. Balance sheets act as a transmission mechanism from housing to consumption that depends on gross portfolio positions … and the leverage distribution. Low interest rate policies accelerate the recovery in housing and consumption …

estimate a structural life-cycle consumption and portfolio choice model that accounts for inertia in portfolio rebalancing and …

willing to give up 0.20% while the oldest retired households would be willing to give up over 1% of lifetime consumption in … to give up 2.7% of lifetime consumption to avoid a large capital outflow …

We argue that the US personal saving rate's long stability (1960s-1980s), subsequent steady decline (1980s-2007), and … recent substantial rise (2008-2011) can be interpreted using a parsimonious buffer stock model of consumption in the presence … of labor income uncertainty and credit constraints. Saving in the model is affected by the gap between target and actual …

Consumer Expenditure Survey, we exploit this historically unique experiment to measure the change in consumption expenditures … consumption demand are significant. The estimated responses are largest for households with relatively low liquid wealth and low …

(before making additional payments). By contrast, debt declined most (so saving rose most) for unconstrained consumers. These …

, whereas debt declined most (so saving rose most) for unconstrained consumers. More generally, the results suggest that there …

We argue that the U.S. personal saving rate's long stability (1960s-1980s), subsequent steady decline (1980s-2007), and … recent substantial rise (2008-2011) can be interpreted using a parsimonious 'buffer stock' model of consumption in the … presence of labor income uncertainty and credit constraints. Saving in the model is affected by the gap between 'target' and …