Earnings uncertainty is central to most heterogeneous-household models. Yet, there is surprisingly little evidence on … how subjective uncertainty is related to consumption behavior. Using unique data from the Survey of Consumer Expectations … uncertainty. In the workhorse consumption-savings model, augmented with risk heterogeneity, MPCs decline with earnings uncertainty …

.S. manufacturing imports to construct a novel measure of input sourcing risk based on the historical volatility of ocean shipping times …