The Economics of Consumption: Theory and Evidence
The Economics of Consumption: Theory and Evidence
Print publication date: 2017
Print ISBN-13: 9780199383146
Published to Oxford Scholarship Online: October 2017
DOI: 10.1093/acprof:oso/9780199383146.001.0001
Consumption decisions are crucial determinants of business cycles and growth. Knowledge of how consumers respond to the economic environment and how they react to the risks that they encounter during the life cycle is therefore crucial for evaluating stabilization policies and the effectiveness of fiscal packages implemented in response to economic downturns or financial crises. Do anticipated income changes have a different impact on consumption than unanticipated shocks? Do all consumers respond in the same way, or does the response vary by the economic circumstances and consumers’ character ... More
Keywords: consumption, intertemporal models, life cycle hypothesis, precautionary saving, liquidity constraints, anticipated income changes, unanticipated income changes
| Print publication date: 2017 | Print ISBN-13: 9780199383146 |
| Published to Oxford Scholarship Online: October 2017 | DOI:10.1093/acprof:oso/9780199383146.001.0001 |
