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 …. We construct a novel consumption-savings model in which a consumer has a well-defined preference ordering over both …

US has not been accompanied by a corresponding rise in consumption inequality. Much of this divergence is due to … different trends in within-group inequality, which has increased significantly for income but little for consumption. We then … develop a simple framework that allows us to analytically characterize how within-group income inequality affects consumption …

. We then show that our contract economy is equivalent to a consumption-savings economy with one-period Arrow securities …

-utility we provide a complete analytical characterization of the optimal consumption insurance contract, the stationary … consumption distribution and the equilibrium aggregate capital stock and interest rate. Under parameter restrictions, there is a … unique stationary equilibrium with partial consumption insurance and a stationary consumption distribution that takes a …

US has not been accompanied by a corresponding rise in consumption inequality. Much of this divergence is due to … different trends in within-group inequality, which has increased significantly for income but little for consumption. We then … develop a simple framework that allows us to analytically characterize how within-group income inequality affects consumption …

. We then show that our contract economy is equivalent to a consumption-savings economy with one-period Arrow securities …