Author: Clifford L. F. Attfield
Publisher:
ISBN:
Category : Applied mathematics
Languages : en
Pages :
Book Description
On Excess Smoothness and Excess Sensitivity in U.S. Consumption
Author: Clifford L. F. Attfield
Publisher:
ISBN:
Category : Applied mathematics
Languages : en
Pages :
Book Description
Publisher:
ISBN:
Category : Applied mathematics
Languages : en
Pages :
Book Description
The excess smoothness of consumption
The Excess Smoothness of Consumption
Author: Gene M. Grossman
Publisher:
ISBN:
Category : Capitalists and financiers
Languages : en
Pages : 33
Book Description
Publisher:
ISBN:
Category : Capitalists and financiers
Languages : en
Pages : 33
Book Description
Inattentive Consumers
Author: Ricardo Reis
Publisher:
ISBN:
Category : Consumer behavior
Languages : en
Pages : 72
Book Description
This paper studies the consumption decisions of agents who face costs of acquiring, absorbing and processing information. These consumers rationally choose to only sporadically update their information and re-compute their optimal consumption plans. In between updating dates, they remain inattentive. This behavior implies that news disperses slowly throughout the population, so events have a gradual and delayed effect on aggregate consumption. The model predicts that aggregate consumption adjusts slowly to shocks, and is able to explain the excess sensitivity and excess smoothness puzzles. In addition, individual consumption is sensitive to ordinary and unexpected past news, but it is not sensitive to extraordinary or predictable events. The model further predicts that some people rationally choose to not plan, live hand-to-mouth, and save less, while other people sporadically update their plans. The longer are these plans, the more they save. Evidence using U.S. aggregate and microeconomic data generally supports these predictions.
Publisher:
ISBN:
Category : Consumer behavior
Languages : en
Pages : 72
Book Description
This paper studies the consumption decisions of agents who face costs of acquiring, absorbing and processing information. These consumers rationally choose to only sporadically update their information and re-compute their optimal consumption plans. In between updating dates, they remain inattentive. This behavior implies that news disperses slowly throughout the population, so events have a gradual and delayed effect on aggregate consumption. The model predicts that aggregate consumption adjusts slowly to shocks, and is able to explain the excess sensitivity and excess smoothness puzzles. In addition, individual consumption is sensitive to ordinary and unexpected past news, but it is not sensitive to extraordinary or predictable events. The model further predicts that some people rationally choose to not plan, live hand-to-mouth, and save less, while other people sporadically update their plans. The longer are these plans, the more they save. Evidence using U.S. aggregate and microeconomic data generally supports these predictions.
The Excess Smoothness Puzzle in Consumption
Understanding Consumption
Author: Angus Deaton
Publisher: Oxford University Press
ISBN: 9780198288244
Category : Business & Economics
Languages : en
Pages : 260
Book Description
An overview of the saving and consumption patterns of households
Publisher: Oxford University Press
ISBN: 9780198288244
Category : Business & Economics
Languages : en
Pages : 260
Book Description
An overview of the saving and consumption patterns of households