Consumption and Saving: Models of Intertemporal Allocation and Their Implications for Public Policy

By O. Attanasio, G. Weber. 2010

529 citations recorded by the source corpus.

This paper provides a critical survey of the large literature on the life cycle model of consumption, both from an empirical and a theoretical point of view. It discusses several approaches that have been taken in the literature to bring the model to the data, their empirical successes, and their failures. Finally, the paper reviews a number of changes to the standard life cycle model that could help solve the remaining empirical puzzles.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/4a2d1f2d0200f305d7da5ab7703a0a18605b4312

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Citations in the corpus

Handbook of Consumer Finance Research (2008, background): “A good example is Attanasio and Weber ( 2010 ) in the Journal of Economic Literature , which in addition to Journal of Economic Perspectives can be an excellent source for literature reviews on household fi nance theories.”
Financial literacy and its consequences: Evidence from Russia during the financial crisis (2013, background): “…spending capacity, both in the random effects GLS model and within groups, in the fixed-effects model.19 The results are statistically It is important to note the significance in these regressions of transitory income shocks (not shown), as well as low permanent income (Attanasio and Weber, 2010).”
Debt-driven growth? Wealth, distribution and demand in OECD countries (2016, background): “11 See Paiella (2009), Attanasio and Weber (2010) and Cooper and Dynan (2014) for recent surveys. to the standard within-panel transformation since both allow for country fixed effects but the former is more reliable with non-stationary data.”
Macroeconomics and Household Heterogeneity (2016, background): “…heterogeneity are contained in Deaton (1992), Attanasio (1999), Krusell and Smith (2006), Heathcote, Storesletten and Violante (2009), Attanasio and Weber (2010), Guvenen (2011) as well as Quadrini and Rios-Rull (2015). the realization of uninsurable idiosyncratic labor earnings shocks, as in…”
The Economic Importance of Financial Literacy: Theory and Evidence (2014, unknown): “The stochastic return from the sophisticated technology follows the process 4 For an older review of the saving literature see Browning and Lusardi (1996); recent surveys are provided by Skinner (2007) and Attanasio and Weber (2010).”
Expectations-Based Reference-Dependent Life-Cycle Consumption (2017, methodology): “This unified explanation for the three main life-cycle consumption facts, as surveyed by At- tanasio and Weber (2010), validates the news-utility model in a domain that it was not designed to explain.”
Monetary Policy when Households have Debt: New Evidence on the Transmission Mechanism (2019, background): “There is a large literature estimating the EIS across households and several papers have argued that the EIS is likely to be increasing with wealth (see Guvenen (2006) and Attanasio and Weber (2010) for an overview).”
Is Piketty’s “Second Law of Capitalism” Fundamental? (2015, background): “Though the empirical literature on consumption and saving has developed rather sophisticated settings ðsee Attanasio and Weber ½2010 for a surveyÞ, at its core these models all rely on intertemporal utility maximization.”
Earnings, consumption and lifecycle choices (2010, background): “…such as the elasticity of intertemporal substitution or the intertemporal discount rate) can be estimated.16 Our reading is that there is some dissatisfaction in the literature regarding the evidence coming from Euler equation estimates (see Browning and Lusardi, 1996; Attanasio and Weber, 2010).”