. Hence, household consumption is not only determined by habit persistence but also by interpersonal comparisons. Most …In this paper we estimate the relevance of habits versus interpersonal comparisons for the consumption behavior of U ….S. households. We exploit information from the recently released consumption expenditure data of the Panel Study of Income Dynamics …

.2. Among households age 30 to 70 with a head employed full-time, the ratio of equity assets to total wealth (net worth … plus human wealth) had a mean value of 4.2%.3. The decreases in stock market indexes between 2007 and 2009 had substantial … impacts on the wealth of only a small proportion of working households, with a mean potential loss in wealth due to stock …

. We construct a novel consumption-savings model in which a consumer has a well-defined preference ordering over both …We propose a new classification of consumption goods into nondurable goods, durable goods and a new class which we call … "memorable" goods. A good is memorable if a consumer can draw current utility from its past consumption experience through memory …

asymmetry are usually considered as mutually exclusive. Using a single data set for US personal consumption, income and wealth …Various deviations from the Permanent Income consumption model with rational expectations have been discussed in the … literature, including loss aversion and liquidity constraints. In the existing literature, these two types of consumption …

insurance coverage were less likely to have reverse mortgage loans. Implications for financial economists, financial planners …

aggregate consumption, wealth and asset returns. Our present-value approach decomposes fluctuations in the global consumption-to-wealth … analysis identifies two historical episodes where the consumption-to-wealth ratio declined rapidly below its historical average …

. We embed this idea in a standard model of consumption-savings decisions: households pursue simple quick-fix consumption …' hypothetical consumption responses to a large number of unanticipated income shocks, allowing us to estimate household …-level consumption policies. Consistent with the theory, 68% of households follow one of four simple quick-fix consumption rules that …

We use data from the 2009 Internet Survey of the Health and Retirement Study to examine the consumption impact of … wealth shocks and unemployment during the Great Recession in the US. We find that many households experienced large capital … to consume with respect to housing and financial wealth are 1 and 3.3 percentage points, respectively. In addition, those …