Using U.S. data it is shown that as the stock market goes into a period of high volatility, nondurables consumption is unaffected but durables consumption falls substantially. It is argued that a plausible explanation for this is that consumers face irreversibilities when adjusting their...

Some forecasters expected that the October 1987 stock market collapse would seriously lower GNP growth by curtailing consumer spending. After declining in October, however, consumer spending has grown moderately. This relatively small effect is consistent with empirical studies showing that the...

Standard theoretical models predict that domestic residents should diversify their portfolios into foreign assets much more than observed in practice. Whether this lack of diversification is important depends on the potential gains from risk-sharing. General equilibrium models and consumption...

This paper explores the household behavior that underlies the link between wealth and consumption at the aggregate level. One possibility is that changes in wealth directly cause changes in consumption through their effect on households' contemporaneous budget sets; another possibility is that...

This article concerns decentralized trading and efficiency. As in Gale (1986a, b), traders transfer endowments of divisible goods in random, pairwise meetings that take place in discrete time. Anonymity and absence of time preference forestall strategic power. As in Kiyotaki and Wright (1989),...

We examine the implications of time variation in the correlation between the equity premium and nondurable consumption growth for equity return dynamics in G-7 countries. Using a VAR-GARCH (1,1) model, we find that the correlation increases with recession indicators such as above-average...

My project "How Green is the Mouse?" analyses the ways in which the Disney Company utilizes various green marketing strategies in an effort to appeal to the growing number of eco-conscious consumers. My study examines different strategies of green marketing and evaluates the use of these...

Culture Jammers, an activist guerilla-like movement, entered the global scene in the 1990s and, through public performances, attempt to draw attention to their claim that the US economic structure is facing a fundamental need to shift away from a consumer-oriented capitalist economy. As an...

The mature market presents challenges to marketers because much of theinformation about the marketplace is based on younger consumers, differing fromolder consumers in many important ways. The research project was commisionedwith two main objectives: to determine what is required to cater for...

A range of empirical approaches to representing preference heterogeneity have emerged in choice modelling. Researchers have been able to explore the differences which selection of a particular approach makes to welfare measures in a particular dataset, and indeed have been able to implement a...