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cAndCwithStickyE.bib
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,-------------------.
| PREAMBLE |
`-------------------'
@preamble{ "\providecommand{\noopsort}[1]{}
\providecommand{\singleletter}[1]{#1} "
}
,-------------------.
| BIBTEX ENTRIES |
`-------------------'
@misc{matthew_n_white_2017_1001068,
author = {Christopher D Carroll and Matt{\-}hew N White and
Team Econ-ARK},
month = oct,
note = {Available at via doi:10.5281/zenodo.1001068 or at
\url{https://doi.org/10.5281/zenodo.1001068}},
title = {econ-ark/HARK: 0.8.0},
year = {2017},
doi = {10.5281/zenodo.1001068},
url = {https://doi.org/10.5281/zenodo.1001068},
}
@article{hrsHabit,
author = {Havranek, Tomas and Rusnak, Marek and Sokolova, Anna},
journal = {European Economic Review},
pages = {142--167},
publisher = {Elsevier},
title = {Habit formation in consumption: A meta-analysis},
volume = {95},
year = {2017},
doi = {10.1016/j.euroecorev.2017.03.009},
url = {https://doi.org/10.1016/j.euroecorev.2017.03.009},
}
@article{cdSmooth,
author = {Campbell, John and Deaton, Angus},
journal = {The Review of Economic Studies},
month = {jul},
note = {\url{http://www.jstor.org/stable/2297552}},
number = {3},
pages = {357--373},
publisher = {The Review of Economic Studies Ltd.},
title = {{W}hy is {C}onsumption {S}o {S}mooth?},
volume = {56},
year = {1989},
abstract = {For thirty years it has been accepted that
consumption is smooth because permanent income is
smoother than measured income. This paper considers
the evidence for the contrary position, that
permanent income is in fact less smooth than measured
income, so that the smoothness of consumption cannot
be straightforwardly explained by permanent income
theory. The paper argues that in postwar U.S.
quarterly data, consumption is smooth because it
responds with a lag to changes in income.},
issn = {0034-6527},
url = {http://www.jstor.org/stable/2297552},
}
@article{hallRandomWalk,
author = {Hall, Robert E.},
journal = {Journal of Political Economy},
note = {Available at
{\url{http://www.stanford.edu/~rehall/Stochastic-JPE-Dec-1978.pdf}}},
pages = {971--87},
title = {Stochastic Implications of the Life-Cycle/Permanent
Income Hypothesis: Theory and Evidence},
volume = {96},
year = {1978},
url = {http://www.stanford.edu/~rehall/Stochastic-JPE-Dec-
1978.pdf},
}
@article{mrSlumps,
author = {Mankiw, N. Gregory and Reis, Ricardo},
journal = {Quarterly Journal of Economics},
month = {November},
number = {4},
pages = {1295--1328},
title = {Sticky Information Versus Sticky Prices: A Proposal
to Replace the New Keynesian Phillips Curve},
volume = {117},
year = {2002},
}
@article{carroll:epidemicinflQJE,
author = {Carroll, Christopher D.},
journal = {Quarterly Journal of Economics},
note =
{\href{https://www.econ2.jhu.edu/people/ccarroll/epidemiologyQJE.pdf}{[PDF]},\href{https://www.econ2.jhu.edu/people/ccarroll/Epidemiology.zip}{[Code]}},
number = {1},
pages = {269--298},
title = {{M}acroeconomic {E}xpectations of {H}ouseholds and
{P}rofessional {F}orecasters},
volume = {118},
year = {2003},
url = {https://www.econ2.jhu.edu/people/ccarroll/
epidemiologyQJE.pdf},
}
@article{dynanHabits,
author = {Dynan, Karen E.},
journal = {American Economic Review},
note = {\url{http://www.jstor.org/stable/117335}},
number = {3},
title = {Habit Formation in Consumer Preferences: Evidence
from Panel Data},
volume = {90},
year = {2000},
url = {http://www.jstor.org/stable/117335},
}
@article{ayNearRational,
author = {Akerlof, George A. and Janet L. Yellen},
journal = {The Quarterly Journal of Economics},
number = {5},
pages = {823--38},
title = {A Near-rational Model of the Business Cycle, with
Wage and Price Intertia},
volume = {100},
year = {1985},
}
@techreport{arsInvestmentInattention,
author = {Adrien Auclert and Matthew Rognlie and Ludwig Straub},
institution = {Stanford University},
type = {mimeo},
title = {Investment, Heterogeneity, and Inattention},
year = {2019},
}
@article{pischkeMicroMacro,
author = {Pischke, J{\"o}rn-Steffen},
journal = {Econometrica},
number = {4},
pages = {805--40},
title = {Individual Income, Incomplete Information, and
Aggregate Consumption},
volume = {63},
year = {1995},
}
@article{simsInattention,
author = {Sims, Christopher},
journal = {Journal of Monetary Economics},
note = {available at
\url{http://ideas.repec.org/a/eee/moneco/v50y2003i3p665-690.html}},
number = {3},
pages = {665--690},
title = {Implications of Rational Inattention},
volume = {50},
year = {2003},
}
@article{gabaixSparsityQJE,
author = {Xavier Gabaix},
journal = {The Quarterly Journal of Economics},
number = {4},
pages = {1661--1710},
title = {A Sparsity-Based Model of Bounded Rationality},
volume = {129},
year = {2014},
url = {https://ideas.repec.org/a/oup/qjecon/v129y2014i4p1661-
1710.html},
}
@article{reis:inattentive,
author = {Reis, Ricardo},
journal = {Journal of Monetary Economics},
number = {8},
pages = {1761--1800},
publisher = {Elsevier},
title = {Inattentive Consumers},
volume = {53},
year = {2006},
}
@article{mw09:RI,
author = {Mackowiak, Bartosz and Mirko Wiederholt},
journal = {American Economic Review},
month = {June},
number = {3},
pages = {769-803},
title = {{Optimal Sticky Prices under Rational Inattention}},
volume = {99},
year = {2009},
abstract = {This paper presents a model in which price setting
firms decide what to pay attention to, subject to a
constraint on information flow. When idiosyncratic
conditions are more variable or more important than
aggregate conditions, firms pay more attention to
idiosyncratic conditions than to aggregate
conditions. When we calibrate the model to match the
large average absolute size of price changes observed
in micro data, prices react fast and by large amounts
to idiosyncratic shocks, but only slowly and by small
amounts to nominal shocks. Nominal shocks have strong
and persistent real effects. (JEL D21, D83, E31,
E52)},
url = {https://ideas.repec.org/a/aea/aecrev/v99y2009i3p769-
803.html},
}
@article{mackWiedREStud15,
author = {Mackowiak, Bartosz and Wiederholt, Mirko},
journal = {The Review of Economic Studies},
number = {4},
pages = {1502--1532},
title = {Business Cycle Dynamics under Rational Inattention},
volume = {82},
year = {2015},
doi = {10.1093/restud/rdv027},
url = {+ http://dx.doi.org/10.1093/restud/rdv027},
}
@article{LuoRinGE,
author = {Yulei Luo and Jun Nie and Gaowang Wang and
Eric R. Young},
journal = {Journal of Economic Theory},
pages = {55--87},
title = {Rational Inattention and the Dynamics of Consumption
and Wealth in General Equilibrium},
volume = {172},
year = {2017},
}
@article{luo:inatC,
author = {Yulei Luo},
journal = {Review of Economic Dynamics},
number = {2},
pages = {366--385},
title = {Consumption Dynamics under Information Processing
Constraints},
volume = {11},
year = {2008},
}
@incollection{woodfordImperfect,
address = {Princeton},
author = {Woodford, Michael},
booktitle = {Knowledge, Information and Expectations in Modern
Macroeconomics},
editor = {Aghion, P. and R. Frydman and J. Stiglitz and
M. Woodford},
publisher = {Princeton University Press},
title = {Imperfect Common Knowledge and the Effects of
Monetary Policy},
year = {2002},
abstract = {This paper reconsiders the Phelps-Lucas hypothesis,
according to which temporary real effects of purely
nominal disturbances result from imperfect
information, but departs from the assumptions of
Lucas (1973) in two crucial respects. Due to
monopolistically competitive pricing, higher-order
expectations are crucial for aggregate inflation
dynamics, as argued by Phelps (1983). And
decisionmakers' subjective perceptions of current
conditions are assumed to be of imperfect precision,
owing to finite information processing capacity, as
argued by Sims (2001). The model can explain highly
persistent real effects of a monetary disturbance,
and a delayed effect on inflation, as found in VAR
studies.},
url = {http://EconPapers.repec.org/RePEc:nbr:nberwo:8673},
}
@article{msInertiaAER,
author = {Stephen Morris and Hyun Song Shin},
journal = {The American Economic Review},
number = {2},
pages = {152--157},
publisher = {American Economic Association},
title = {Inertia of Forward-Looking Expectations},
volume = {96},
year = {2006},
issn = {00028282},
url = {http://www.jstor.org/stable/30034632},
}
@article{muthOptimal,
author = {Muth, John F.},
journal = {Journal of the American Statistical Association},
number = {290},
pages = {299--306},
title = {Optimal Properties of Exponentially Weighted
Forecasts},
volume = {55},
year = {1960},
}
@article{lucas:imperfectInfo,
author = {Lucas, Robert E.},
journal = {American Economic Review},
month = {June},
number = {3},
pages = {326--334},
title = {Some International Evidence on Output-Inflation
Tradeoffs},
volume = {63},
year = {1973},
}
@article{ludvigson&michaelides:excesses,
author = {Ludvigson, Sydney and Alexander Michaelides},
journal = {American Economic Review},
month = {June},
number = {3},
pages = {631--647},
title = {Does Buffer Stock Saving Explain the Smoothness and
Excess Sensitivity of Consumption?},
volume = {91},
year = {2001},
}
@techreport{fhnMPC,
author = {Andreas Fagereng and Martin B. Holm and
Gisle J. Natvik},
institution = {Statistics Norway},
type = {discussion paper},
title = {MPC Heterogeneity and Household Balance Sheets},
volume = {852},
year = {2017},
}
@article{carroll&kimball:concavity,
author = {Carroll, Chris{\-}to{\-}pher D. and
Kim{\-}ball, Miles S.},
journal = {Econometrica},
note =
{\url{https://www.econ2.jhu.edu/people/ccarroll/concavity.pdf}},
number = {4},
pages = {981--992},
title = {On the {C}on{\-}cav{\-}ity of the {C}on{\-}sumption
{F}unction},
volume = {64},
year = {1996},
url = {https://www.econ2.jhu.edu/people/ccarroll/concavity.pdf},
}
@article{tutino_RIconsumption,
author = {Antonella Tutino},
journal = {Review of Economic Dynamics},
month = {July},
number = {3},
pages = {421--439},
title = {Rationally Inattentive Consumption Choices},
volume = {16},
year = {2013},
}
@article{chettySzeidl:cCommitmentsEcta,
author = {Raj Chetty and Adam Szeidl},
journal = {Econometrica},
month = {03},
pages = {855--890},
title = {Consumption Commitments and Habit Formation},
volume = {84},
year = {2016},
url = {https://ideas.repec.org/a/wly/emetrp/v84y2016ip855-
890.html},
}
@article{coibGor:AER15,
author = {Olivier Coibion and Yuriy Gorodnichenko},
journal = {American Economic Review},
month = {August},
number = {8},
pages = {2644--2678},
title = {{Information Rigidity and the Expectations Formation
Process: A Simple Framework and New Facts}},
volume = {105},
year = {2015},
}
@article{fuhrer:JME17,
author = {Jeffrey C. Fuhrer},
journal = {Journal of Monetary Economics},
month = {April},
pages = {22--55},
title = {Expectations as a Source of Macroeconomic
Persistence: Evidence from Survey Expectations in a
Dynamic Macro Model},
volume = {86},
year = {2017},
}
@techreport{fuhrerIntrinsicPersistence,
author = {Fuhrer, Jeffrey C.},
institution = {Federal Reserve Bank of Boston},
month = may,
number = {18-9},
type = {working paper},
title = {Intrinsic Expectations Persistence: Evidence from
Professional and Household Survey Expectations},
year = {2018},
}
@incollection{cmModel,
address = {Cambridge, MA},
author = {Campbell, John Y. and Mankiw, N. Gregory},
booktitle = {NBER Macroeconomics Annual, 1989},
editor = {Blanchard, Olivier J. and Fischer, Stanley},
note = {\url{http://www.nber.org/papers/w2924.pdf}},
pages = {185--216},
publisher = {MIT Press},
title = {Consumption, Income, and Interest Rates:
Reinterpreting the Time-Series Evidence},
year = {1989},
url = {http://www.nber.org/papers/w2924.pdf},
}
@article{blanchardFinite,
author = {Blanchard, Olivier J.},
journal = {Journal of Political Economy},
month = {April},
number = {2},
pages = {223--247},
title = {Debt, Deficits, and Finite Horizons},
volume = {93},
year = {1985},
}
@article{edge2007Learning,
author = {Edge, Rochelle M and Laubach, Thomas and
Williams, John C},
journal = {Journal of Monetary Economics},
number = {8},
pages = {2421--2438},
publisher = {Elsevier},
title = {Learning and shifts in long-run productivity growth},
volume = {54},
year = {2007},
}
@article{jorgenson:ProductivityGrowthResurgence,
author = {Dale W. Jorgenson and Mun S. Ho and Kevin J. Stiroh},
journal = {Journal of Economic Perspectives},
month = {Winter},
number = {1},
pages = {3--24},
title = {A Retrospective Look at the U.S. Productivity Growth
Resurgence},
volume = {22},
year = {2008},
}
@article{zeldesStochastic,
author = {Zeldes, Stephen P.},
journal = {Quarterly Journal of Economics},
month = {May},
number = {2},
pages = {275--298},
title = {Optimal Consumption with Stochastic Income:
{D}eviations from Certainty Equivalence},
volume = {104},
year = {1989},
}
@article{lmpPermShocks,
author = {Low, Hamish and Meghir, Costas and Pistaferri, Luigi},
journal = {The American economic review},
number = {4},
pages = {1432--1467},
publisher = {American Economic Association},
title = {Wage risk and employment risk over the life cycle},
volume = {100},
year = {2010},
}
@article{pistaferriSuperior,
author = {Luigi Pistaferri},
journal = {The Review of Economics and Statistics},
month = {August},
number = {3},
pages = {465-476},
title = {Superior Information, Income Shocks, And The
Permanent Income Hypothesis},
volume = {83},
year = {2001},
}
@article{gsInferring,
author = {Guvenen, Fatih and Smith, Anthony A.},
journal = {Econometrica},
number = {6},
pages = {2085-2129},
title = {Inferring Labor Income Risk and Partial Insurance
From Economic Choices},
volume = {82},
year = {2014},
abstract = {This paper uses the information contained in the
joint dynamics of individuals' labor earnings and
consumption-choice decisions to quantify both the
amount of income risk that individuals face and the
extent to which they have access to informal
insurance against this risk. We accomplish this task
by using indirect inference to estimate a structural
consumption–savings model, in which individuals
both learn about the nature of their income process
and partly insure shocks via informal mechanisms. In
this framework, we estimate (i) the degree of partial
insurance, (ii) the extent of systematic differences
in income growth rates, (iii) the precision with
which individuals know their own income growth rates
when they begin their working lives, (iv) the
persistence of typical labor income shocks, (v) the
tightness of borrowing constraints, and (vi) the
amount of measurement error in the data. In
implementing indirect inference, we find that an
auxiliary model that approximates the true structural
equations of the model (which are not estimable)
works very well, with negligible small sample bias.
The main substantive findings are that income shocks
are moderately persistent, systematic differences in
income growth rates are large, individuals have
substantial amounts of information about their income
growth rates, and about one-half of income shocks are
smoothed via partial insurance. Putting these
findings together, the amount of uninsurable lifetime
income risk that individuals perceive is
substantially smaller than what is typically assumed
in calibrated macroeconomic models with incomplete
markets.},
doi = {10.3982/ECTA9446},
url = {https://onlinelibrary.wiley.com/doi/abs/10.3982/ECTA9446},
}
@misc{kmpIncomeExpectations,
author = {Karahan, Fatih and Sean Mihaljevich and
Laura Pilossoph},
howpublished =
{\href{http://libertystreeteconomics.newyorkfed.org/2017/11/understanding-permanent-and-temporary-income-shocks.html}{URL
link retrieved on 03/02/2018 \texttt{here}.}},
journal = {Liberty Street Economics},
number = {November 08},
type = {Blog},
title = {Understanding Permanent and Temporary Income Shocks},
year = {2017},
}
@article{kennickellPermanent,
author = {Kennickell, Arthur},
journal = {mimeo, Board of Governors of the Federal Reserve
System},
title = {Saving and Permanent Income: Evidence from the 1992
SCF},
year = {1995},
}
@article{opLiquidH2M,
author = {Olafsson, Arna and Pagel, Michaela},
journal = {The Review of Financial Studies},
number = {11},
pages = {4398--4446},
title = {The Liquid Hand-to-Mouth: Evidence from Personal
Finance Management Software},
volume = {31},
year = {2018},
}
@incollection{sswNAIRU,
address = {New York},
author = {Staiger, Douglas and James H. Stock and
Mark W. Watson},
booktitle = {The Roaring Nineties: Can Full Employment Be
Sustained?},
editor = {Alan B. Krueger and Robert Solow},
publisher = {The Russell Sage Foundation and Century Press},
title = {Prices Wages and the US NAIRU in the 1990s},
year = {2001},
}
@article{fernald:disappointingRecovery,
author = {John G. Fernald and Robert Hall and James Stock and
Mark Watson},
journal = {Brookings Papers on Economic Activity},
title = {The Disappointing Recovery of Output after 2009},
volume = {Spring},
year = {2017},
}
@article{bmpMITshocks,
author = {Boppart, Timo and Krusell, Per and Mitman, Kurt},
journal = {Journal of Economic Dynamics and Control},
number = {C},
pages = {68--92},
title = {Exploiting MIT Shocks in Heterogeneous-Agent
Economies: The Impulse Response as a Numerical
Derivative},
volume = {89},
year = {2018},
}
@article{zeldes:jpe,
author = {Zeldes, Stephen P.},
journal = {Journal of Political Economy},
note = {Available at
{\url{http://www.jstor.org/stable/1831315}}},
pages = {305--46},
title = {Consumption and Liquidity Constraints: An Empirical
Investigation},
volume = {97},
year = {1989},
url = {http://www.jstor.org/stable/1831315},
}
@article{som07,
author = {Martin Sommer},
journal = {Advances in Macroeconomics},
number = {1},
pages = {Article 21},
title = {Habit Formation and Aggregate Consumption Dynamics},
volume = {7},
year = {2007},
}
@article{workingTimeAgg,
author = {Holbrook Working},
journal = {Econometrica},
number = {4},
pages = {916--918},
title = {Note on the Correlation of First Differences of
Averages in a Random Chain},
volume = {28},
year = {1960},
}
@article{cfwSentiment,
author = {Carroll, Christopher D. and Fuhrer, Jeffrey C. and
Wilcox, David W.},
journal = {American Economic Review},
number = {5},
pages = {1397-1408},
title = {Does Consumer Sentiment Forecast Household Spending?
{I}f So, Why?},
volume = {84},
year = {1994},
}
@article{wilcox:aer,
author = {Wilcox, David W.},
journal = {American Economic Review},
number = {4},
pages = {922--941},
title = {The Construction of U.S. Consumption Data: Some Facts
and Their Implications for Empirical Work},
volume = {82},
year = {1992},
}
@article{cssIntlStickyC,
author = {Carroll, Christopher D. and Sommer, Martin and
Sla{\-}calek, Jiri},
journal = {Review of Economics and Statistics},
month = {October},
note =
{\url{https://www.econ2.jhu.edu/people/ccarroll/papers/cssIntlStickyC/}},
number = {4},
pages = {1135--1145},
title = {International Evidence on Sticky Consumption Growth},
volume = {93},
year = {2011},
abstract = {This paper estimates the degree of stickiness in
aggregate consumption growth (sometimes interpreted
as reflecting consumption habits) for thirteen
advanced economies. We find that after controlling
for measurement error, consumption growth has a high
degree of autocorrelation, with a stickiness
parameter of about 0.7 on average across countries.
The sticky consumption growth model outperforms the
random walk model of Hall (1978) and typically fits
the data better than the popular Mankiw (1989) model,
though in a few countries, the sticky consumption
growth and Campbell-Mankiw models work about equally
well.},
doi = {10.1162/REST\_a\_00122},
url = {https://doi.org/10.1162/REST_a_00122},
}
@article{soulelesTaxRefunds,
author = {Souleles, Nicholas S.},
journal = {American Economic Review},
month = {September},
number = {4},
pages = {947--958},
title = {The Response of Household Consumption to Income Tax
Refunds},
volume = {89},
year = {1999},
}
@article{jpsTax,
author = {Johnson, David S. and Parker, Jonathan A. and
Souleles, Nicholas S.},
journal = {American Economic Review},
month = {December},
number = {5},
pages = {1589--1610},
title = {Household Expenditure and the Income Tax Rebates of
2001},
volume = {96},
year = {2006},
url = {http://ideas.repec.org/a/aea/aecrev/v96y2006i5p1589-
1610.html},
}
@article{psjmMPC2008,
author = {Parker, Jonathan A and Souleles, Nicholas S and
Johnson, David S and McClelland, Robert},
journal = {The American Economic Review},
month = {October},
number = {6},
pages = {2530--2553},
publisher = {American Economic Association},
title = {Consumer spending and the economic stimulus payments
of 2008},
volume = {103},
year = {2013},
}
@techreport{kuengTaxnews,
author = {Lorenz Kueng},
institution = {Northwestern University},
type = {working paper},
title = {Tax News: Identifying the Household Consumption
Response to Tax Expectations Using Municipal Bond
Prices},
year = {2012},
url = {http://citeseerx.ist.psu.edu/viewdoc/summary?
doi=10.1.1.646.4710},
}
@article{BrowningColladoAER,
author = {Browning, Martin and Collado, M. Dolores},
journal = {American Economic Review},
number = {3},
pages = {681--692},
title = {The Response of Expenditures to Anticipated Income
Changes: Panel Data Estimates},
volume = {91},
year = {2001},
}
@article{parker25million,
author = {Jonathan A. Parker},
journal = {American Economic Journal: Macroeconomics},
month = {October},
number = {9},
pages = {153--183},
title = {Why Don't Households Smooth Consumption? Evidence
from a \$25 Million Experiment},
volume = {4},
year = {2017},
}
@article{hsiehAlaska,
author = {Hsieh, Chang-Tai},
journal = {American Economic Review},
number = {1},
pages = {397--405},
title = {Do consumers react to anticipated income changes?
Evidence from the Alaska permanent fund},
volume = {93},
year = {2003},
}
@article{CoulibalyLiMortgage,
author = {Coulibaly, Brahima and Li, Geng},
journal = {The Review of Economics and Statistics},
month = {February},
number = {1},
pages = {10--19},
publisher = {MIT Press},
title = {Do Homeowners Increase Consumption after the Last
Mortgage Payment? An Alternative Test of the
Permanent Income Hypothesis},
volume = {88},
year = {2006},
doi = {doi: 10.1162/003465306775565693},
issn = {0034-6535},
url = {http://www.ingentaconnect.com/content/mitpress/restat/2006/
00000088/00000001/art00002},
}
@article{kuengAlaska,
author = {Kueng, Lorenz},
journal = {The Quarterly Journal of Economics},
number = {4},
pages = {1693--1751},
publisher = {Oxford University Press},
title = {Excess sensitivity of high-income consumers},
volume = {133},
year = {2018},
}
@article{brodaParker,
author = {Broda, Christian and Parker, Jonathan A.},
journal = {Journal of Monetary Economics},
number = {S},
pages = {20--36},
title = {The Economic Stimulus Payments of 2008 and the
Aggregate Demand for Consumption},
volume = {68},
year = {2014},
}
@article{cstwMPC,
author = {Carroll, Christopher and Slacalek, Jiri and
Tokuoka, Kiichi and White, Matthew N.},
journal = {Quantitative Economics},
number = {3},
pages = {977-1020},
title = {The distribution of wealth and the marginal
propensity to consume},
volume = {8},
year = {2017},
abstract = {In a model calibrated to match micro- and
macroeconomic evidence on household income dynamics,
we show that a modest degree of heterogeneity in
household preferences or beliefs is sufficient to
match empirical measures of wealth inequality in the
United States. The heterogeneity-augmented model's
predictions are consistent with microeconomic
evidence that suggests that the annual marginal
propensity to consume (MPC) is much larger than the
roughly 0.04 implied by commonly used macroeconomic
models (even ones including some heterogeneity). The
high MPC arises because many consumers hold little
wealth despite having a strong precautionary motive.
Our model also plausibly predicts that the aggregate
MPC can differ greatly depending on how the shock is
distributed across households (depending, e.g., on
their wealth, or employment status).},
doi = {https://doi.org/10.3982/QE694},
url = {https://onlinelibrary.wiley.com/doi/abs/10.3982/QE694},
}
@article{kvwWealthyH2m,
author = {Kaplan, Greg and Violante, Gianluca and
Weidner, Justin},
journal = {Brookings Papers on Economic Activity},
pages = {77--138},
title = {The Wealthy Hand-to-Mouth},
volume = {Spring},
year = {2014},
abstract = {The wealthy hand-to-mouth are households who hold
little or no liquid wealth (e.g. cash, checking, and
saving accounts), despite owning sizable amounts of
illiquid assets (i.e., assets that carry a
transaction cost, such as housing, large durables, or
retirement accounts). This portfolio configuration
implies that these households have large marginal
propensities to consume out of small income changes
–a key determinant of the macroeconomic
effects of fiscal policy. The wealthy hand-to-mouth,
therefore, behave in many respects like households
with little or no net worth, yet they escape standard
definitions (and empirical measurements) of
hand-to-mouth agents based on net worth. We use
survey data on household portfolios for the U.S.,
Canada, Australia, the U.K., Germany, France, Italy,
and Spain to document the share of such households
across countries, their demographic characteristics,
the composition of their balance sheet, and the
persistence of hand-to-mouth status over the life
cycle. Finally, we discuss the implications of this
group of consumers for macroeconomic modelling and
policy analysis.},
}
@article{kmvHANK,
author = {Kaplan, Greg and Moll, Benjamin and
Violante, Giovanni L.},
journal = {American Economic Review},
month = {March},
number = {3},
pages = {697--743},
title = {Monetary Policy According to HANK},
volume = {108},
year = {2018},
abstract = {We revisit the transmission mechanism of monetary
policy for household consumption in a Heterogeneous
Agent New Keynesian (HANK) model. The model yields
empirically realistic distributions of household
wealth and marginal propensities to consume because
of two key features: multiple assets with different
degrees of liquidity and an idiosyncratic income
process with leptokurtic income changes. In this
environment, the indirect effects of an unexpected
cut in interest rates, which operate through a
general equilibrium increase in labor demand, far
outweigh direct effects such as intertemporal
substitution. This finding is in stark contrast to
small- and medium-scale Representative Agent New
Keynesian (RANK) economies, where intertemporal
substitution drives virtually all of the transmission
from interest rates to consumption.},
}
@article{bbdUncertainty,
author = {Baker, Scott R and Bloom, Nicholas and
Davis, Steven J},
journal = {The Quarterly Journal of Economics},
number = {4},
pages = {1593--1636},
publisher = {Oxford University Press},
title = {Measuring economic policy uncertainty},
volume = {131},
year = {2016},
}
@article{sims_beyondLQ,
author = {Christopher A. Sims},
journal = {American Economic Review},
month = {May},
number = {2},
pages = {158--163},
title = {Rational Inattention: Beyond the Linear--Quadratic
Case},
volume = {96},
year = {2006},
}
@article{aslCredit,
author = {Sumit Agarwal and Chunlin Liu and
Nicholas S. Souleles},
journal = {Journal of Political Economy},
month = {December},
number = {6},
pages = {986--1019},
title = {The Reaction of Consumer Spending and Debt to Tax
Rebates--Evidence from Consumer Credit Data},
volume = {115},
year = {2007},
url = {http://www.nber.org/papers/w13694},
}
@article{bppInequality,
author = {Blundell, Richard and Pistaferri, Luigi and
Preston, Ian},
journal = {American Economic Review},
month = {December},
number = {5},
pages = {1887--1921},
title = {Consumption Inequality and Partial Insurance},
volume = {98},
year = {2008},
}
@article{jappelliPistaferri_FPMPC,
author = {Jappelli, Tullio and Pistaferri, Luigi},
journal = {AEJ: Marcoeconomics},
number = {4},
pages = {107--36},
title = {Fiscal Policy and MPC Heterogeneity},
volume = {6},
year = {2014},
}
@techreport{aydinCresponse,
author = {Deniz Ayd{\i}n},
institution = {Washington University, St.\ Louis},
type = {mimeo},
title = {Consumption Response to Credit Expansions: Evidence
from Experimental Assignment of 45,307 Credit Lines},
year = {2018},
}
@article{alvarezGuisoLippi:DurCons,
author = {Fernando Alvarez and Luigi Guiso and Francesco Lippi},
journal = {American Economic Review},
month = {August},
number = {5},
pages = {2272--2300},
title = {Durable Consumption and Asset Management with
Transaction and Observation Costs},
volume = {102},
year = {2012},
url = {https://ideas.repec.org/a/aea/aecrev/v102y2012i5p2272-
2300.html},
}
@article{ckConsumption,
author = {Crawley, Edmund and Kuchler, Andreas},
journal = {American Economic Journal: Macroeconomics},
title = {Consumption Heterogeneity: Micro Drivers and Macro
Implications},
year = {2022},
}