The Life Cycle Model of Consumption and Saving

By Martin Browning, Thomas F. Crossley. 2001

676 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/55b2c77079080169db593a650210dcae0efb3d26

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

Citations in the corpus

Asymmetric Consumption Effects of Transitory Income Shocks* (2019, background): “…changes due to exogenous events such as unemployment, disability, or tax rebates, and evaluates in a quasi-experimental setting how consumption reacts to such changes (see for instance Browning and Crossley, 2001; Stephens, 2001; Souleles, 1999; 2002; Agarwal et al., 2007; Misra and Surico, 2014).”
The effects of government transfers on monthly cycles in drug abuse, hospitalization and mortality ☆ (2007, background): “See Browning and Lusardi (1996) and Browning and Crossley (2001) for an interpretation of recent empirical findings.”
Susceptibility to and impact of interpersonal influence in an investment context (2009, background): “Consumers’ current investment choices have considerable consequences for their current and future consumption (cf. Browning and Crossley 2001), so from this perspective, it seems surprising that marketing research has paid so little attention to investment decisions (Johnson and Tellis 2005;…”
The Consumption Response to Income Changes (2009, background): “As pointed out by Browning and Crossley (2001) unemployment insurance provides two benefits to consumers.”
Explaining Consumption Excess Sensitivity with Near-Rationality: Evidence from Large Predetermined Payments (2015, positive): “Cochrane (1989) who studies early excess sensitivity tests based on aggregate time series, while Browning and Crossley (2001) and Fuchs-Schuendeln and Hassan (2015) focus on more recent tests based on micro data.”
Wealth Shocks, Unemployment Shocks and Consumption in the Wake of the Great Recession (2015, methodology): “Browning and Crossley (2001) estimate a small elasticity of expenditures with 4 In quite different contexts, this “magnitude hypothesis” has been tested by Coulibaly and Li (2006) and Scholnick (2013), who argue that the final mortgage payment represents a large expected disposable income shock…”
A Model of the Consumption Response to Fiscal Stimulus Payments (2011, neutral): “This explanation is reminiscent of calculations by Cochrane (1989), and more recently by Browning and Crossley (2001), who show that the utility loss from setting consumption equal to income, instead of fully optimizing, is very small.”
How well do children insure parents against low retirement income? An analysis using survey data from urban China (2006, background): “It is notable that the coe¢ cient on Tobit and CLAD models assuming a linear relationship, in columns (7) and (8) respectively, do not di¤er signicantly from below-threshold coe¢ cients found in the Tobit and CLAD threshold models shown in columns (9) and (10).”
The impact of job loss on family dissolution (2012, background): “The economic literature has traditionally considered the impact of earnings’ shocks on family well-being, focusing on the consumption or production side and mostly analysing couples that remain together after these shocks (see for example Browning and Crossley, 2001 and Collen and Gruber, 2000).”
Locus of Control and Savings (2016, background): “The 2For a sense of this debate see Shefrin & Thaler (1988), Browning & Crossley (2001), and DellaVigna (2009).”
The Liquid Hand-to-Mouth: Evidence from Personal Finance Management Software (2018, methodology): “After all, the calculations of Browning and Crossle (2001) show that the utility loss from setting consumption equal to income (instead of smoothing it perfectly) is second order in a plausibly parameterized life-cycle buffer stock model.”
The Wealthy Hand-to-Mouth (2014, methodology): “This explanation is reminiscent of calculations made by Cochrane (1989), Krusell and Smith (1996), and Browning and Crossley (2001) who demonstrated that in several different contexts the utility loss from setting consumption equal to income, instead of fully optimizing, can be second order.”
Fiscal Policy and MPC Heterogeneity (2014, methodology): “A first method identifies episodes in which income changes unexpectedly, and evaluates in a quasi-experimental setting how consumption reacts to such changes (due to, say, unemployment or disability, see Browning and Crossley, 2001, and Stephens, 2001).”