Did you mean: "excess sensitivity" OR "rule of thumb" consumption income euler equation ** estimated** regression empirical

### [PDF][PDF] **Consumption **and liquidity constraints: an **empirical **investigation

SP Zeldes - The Journal of Political Economy, 1989 - JSTOR

**...**For many specifications of preferences, this individual will be constrained to

**consume**less than

his

**...**12 Hall and Mishkin's first test for

**excess**

**sensitivity**does not use a Keynesian alterna- tive

**...**

some previous authors, I allow the family utility function (and thus

**consumption**) to be

**...**

### [PDF][PDF] **Consumption**, **income **and interest rates: Reinterpreting the time series evidence

JY Campbell, NG Mankiw - NBER Macroeconomics Annual 1989, Volume …, 1989 - nber.org

**...**can no longer be precisely interpreted as the fraction of agents who

**consume**their current

**...**We

begin our examination of

**consumption**and real interest rates by maintaining the hypothesis that

**...**

will then go on to consider a more general model with some

**rule**-

**of**-

**thumb**consumers.

**...**

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### Death to the log-linearized **consumption Euler equation**!(And very poor health to the second-order approximation)

CD Carroll - Advances in Macroeconomics, 2001 - degruyter.com

**...**Furthermore, '

**excess**

**sensitivity**' tests can find either high or low degrees of sensitivity, depending

on the exact

**...**In the last period of life, the optimal plan is to

**consume**everything, c

**...**an individual

household as ∆ log Ci,t+1 then the group-mean value of

**consumption**growth across

**...**

### Permanent **income**, current **income**, and **consumption**

JY Campbell, NG Mankiw - Journal of Business & Economic …, 1990 - amstat.tandfonline.com

**...**It dis- plays Flavin's (1981) "

**excess**

**sensitivity**" of consump- tion to

**income**, since

**consumption**

moves more

**...**no longer be precisely interpreted as the fraction of agents who

**consume**their current

**...**

**income**per capita in 1982 dollars, and C, is per capita

**consumption**of nondurables

**...**

### [PDF][PDF] **Excess sensitivity **and asymmetries in **consumption**: an **empirical **investigation

**...**in behavior between the liquidity-constrained, the myopic or the so-called

**rule**-

**of**-

**thumb**con-

sumers

**...**that bu is numerically zero in the unrestricted

**regressions**for both measures of

**consumption**.

**...**found no signifi- cant difference, both in terms of tests for

**excess**

**sensitivity**and

**...**

### Household production and the **excess sensitivity **of **consumption **to current **income**

M Baxter, UJ Jermann - 1999 - nber.org

**...**their current

**income**. In addition to the

**rule**-

**of**-

**thumb**

**consumption**function, several possible ex-

**...**

lustrates how apparent

**excess**

**sensitivity**arises in the presence of a nonmarket

**consumption**

good.

**...**The share of market goods in the

**consumption**aggregate is s = 0.63. The

**...**

### Using subjective **income **expectations to test for **excess sensitivity **of **consumption **to predicted **income **growth

T Jappelli, L Pistaferri - European Economic Review, 2000 - Elsevier

**...**separabilities in the utility function is interesting in its own right and ensures that

**excess**

**sensitivity**

does not

**...**the effect of unevenly distributed aggregate shocks μ t+1 on the forecast error in

**consumption**.

**...**growth E it Δ ln Y it+1 with the subjective expectation of

**income**growth g e i

**...**

### Permanent **income**, current **income**, and **consumption**: Evidence from two panel data sets

A Lusardi - Journal of Business & Economic Statistics, 1996 - amstat.tandfonline.com

**...**permanent-

**income**model and on the existence and quantitative impor- tance of "

**rule**

**of**

**thumb**"

consumers

**...**Moreover, he did not find evidence in favor of

**excess**

**sensitivity**.

**...**complete, individuals7

marginal rate of substitution of

**consumption**now for future

**consumption**is equated

**...**

### Testing for liquidity constraints in **Euler equations **with complementary data sources

T Jappelli, JS Pischke, NS Souleles - Review of Economics and statistics, 1998 - MIT Press

**...**1994) splits the sample according to the constraint indicator and tests for

**excess**

**sensitivity**in

**Euler**

**...**

**Income**and wealth measures in the PSID are deflated by the price index of personal

**consumption**expenditures (base year 1982–1984); food expenditures are deflated by the

**...**

**Consumption **over the Life Cycle and over the Business Cycle

OP Attanasio, M Browning - 1993 - nber.org

**...**In particular, we explain how ignoring demographics can lead to apparent

**excess**

**sensitivity**in

the

**...**samples, if some of them are very noisy and uncorrected with expected

**income**.

**...**of demographic»

and labour supply variables on the

**Euler**

**equation**for

**consumption**Real interest

**...**

### [CITATION][C] The **consumption **function: A theoretical and **empirical **overview

J Muellbauer, R Lattimore - Handbook of …, 1995 - Blackwell Oxford, UK and …

### How do house prices affect **consumption**? Evidence from micro data

JY Campbell, JF Cocco - Journal of Monetary Economics, 2007 - Elsevier

**...**to control for the endogeneity of cohort membership, one should

**estimate**a selection

**equation**

jointly with the

**consumption**

**Euler**

**equation**on the

**...**some insights about the evolution of the

variables over the life-cycle we first

**regress**log

**consumption**and log

**income**on 91 year

**...**

### [PDF][PDF] Long-run labor supply and the elasticity of intertemporal substitution for **consumption**

S Basu, M Kimball - manuscript, University of Michigan, 2002 - files.nyu.edu

**...**this area. • equals labor

**income**divide by nominal

**consumption**expenditure. For the data, =0.77.

**...**

This contrast with Campbell and Mankiw's (1989)

**rule**-

**of**-

**thumb**hypothesis and shows that

**excess**

**sensitivity**does not exist. • Statistically, we can not reject the restriction of

**...**

**Consumption **adjustment under time-varying **income **uncertainty

JH Hahm, DG Steigerwald - Review of Economics and Statistics, 1999 - MIT Press

**...**To test for

**excess**

**sensitivity**of

**consumption**under changing

**income**uncertainty, we test the null

**...**

implies that 2 in

**equation**(2.12) represents the share of consumers who

**consume**current

**income**.

**...**

or less, an increase in

**income**uncertainty in period t leaves

**consumption**in period

**...**

### Is **consumption **growth consistent with intertemporal optimization? Evidence from the consumer expenditure survey

OP Attanasio, G Weber - 1994 - nber.org

**...**Finally, we can test theory restrictions in variousways, including the popular

**excess**-

**sensitivity**

tests. -

**...**Notes: MA (1).consistent stint dard errors in parenthes. Instruments used are second, third

and fourth lags of

**consumption**growth,

**income**growth, inflation and the real

**...**

**Consumption**, house prices, and collateral constraints: a structural econometric analysis

M Iacoviello - Journal of Housing Economics, 2004 - Elsevier

**...**However, describing

**rule**-

**of**-

**thumb**consumers in the naive way C t = Y t may omit

**...**The coefficient

on

**income**should then capture both the degree of

**excess**

**sensitivity**of

**consumption**

**...**all the studies

that introduce housing wealth or housing prices in

**consumption**

**equations**do so

**...**

**Consumption **growth, the interest rate and aggregation

OP Attanasio, G Weber - The Review of Economic Studies, 1993 - restud.oxfordjournals.org

**...**and Mankiw (1989), who suggest the presence of liquidity- constrained households that

**consume**

their labour

**...**cohort data than on aggregate data (on the basis of an

**excess**

**sensitivity**test to

**...**If the

cross-sectional distribution ofhousehold

**consumption**was log-normal it would be

**...**

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**Consumption **and credit: a model of time-varying liquidity constraints

S Ludvigson - Review of Economics and Statistics, 1999 - MIT Press

**...**

**excess**

**sensitivity**of

**consumption**growth to forecastable

**income**growth, it does not deliver a

**...**

**Rule**-

**of**-

**thumb**consumers are not directly influenced by credit availability because they are

**...**

calibration assumptions next and then describe the household's optimal

**consumption**policy.

**...**

### Approximation bias in linearized **Euler equations**

S Ludvigson, CH Paxson - Review of Economics and Statistics, 2001 - MIT Press

**...**Binding constraints will force these agents to

**consume**their current

**income**instead of their

permanent

**...**the value of indicated by the (average) slope of the true

**consumption**growth

**equation**

**...**

are less prudent (and less risk averse) than those with less-risky

**income**streams, even if

**...**

### The **consumption **response to **income **changes

T Jappelli, L Pistaferri - 2010 - nber.org

**...**Section 3 focuses on expected

**income**changes, distinguishing between the traditional

**excess**

**sensitivity**

**...**marginal propensity to

**consume**with respect to

**income**shocks, ie, the parameters ϕk .

These

**...**that is directly derived from the

**consumption**

**Euler**

**equations**(3) and (11).

**...**

Did you mean to search for: "excess sensitivity" OR "rule of thumb" consumption income euler equation ** estimated** regression empirical