information on consumption, income and wealth, to structurally estimate a buffer-stock saving model. We exploit the information … contained in the joint dynamics of income, consumption and wealth to quantify the degree of insurance against income risk … do not impose any model structure on the consumption process. This suggests that Italian households do not have access to …

The standard neoclassical growth model with Cobb-Douglas production predicts a monotonically declining saving rate …, when reasonably calibrated. Ample empirical evidence, however, shows that the transition path of a country's saving rate …, implies transitional dynamics of the saving rate that accords well with empirical evidence. This holds true even in a growth …

The standard neoclassical growth model with Cobb-Douglas production predicts a monotonically declining saving rate …, when reasonably calibrated. Ample empirical evidence, however, shows that the transition paths of most countries' saving …-shaped pattern of the saving rate (Goméz, 2008). However, the implied magnitude of the hump falls short of what is seen in empirical …

This paper estimates the importance of temptation (Gul and Pesendorfer, 2001) for consumption smoothing and asset … that the utility cost of temptation is one-quarter of the utility benefit of consumption. Further, we show that allowing for …

During the Great Recession, the collapse of consumption across the U.S. varied greatly but systematically with house …-price declines. We find that financial distress among U.S. households amplified the sensitivity of consumption to house-price shocks …-estimated-dynamic model to measure the financial distress channel, we find that these two facts amplify the aggregate drop in consumption by 7 …

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 …

). Allowing for richer earnings dynamics implies a substantially better profit of the evolution of cross-sectional consumption … inequality over the life cycle and of the individual-level degree of consumption insurance against persistent earnings shocks …