Precautionary Saving and the Marginal Propensity to Consume out of Permanent Income

By Christopher D. Carroll. 2001

148 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/56c9afe6b4412405514a679a30f8c446153dbbbc

Citations in the corpus

• Monetary Policy Pass-Through: Household Consumption and Voluntary Deleveraging (2014, unknown): “(2)See, for instance, Carroll et al. (2014) for evidence supporting the hypothesis that the MPC is correlated with wealth; and Mian and Sufi (2012b) for evidence on the importance of this aggregate demand channel and its role in explaining the increase of unemployment in the U.”
• Income Changes and Consumption: Evidence from the 2013 Federal Government Shutdown (2015, unknown): “Flavin (1981), Campbell (1987), Carroll (2009) and Kaplan and Violante (2010) provide further theoretical justification for strong consumption responses to permanent income shocks in a wide range of settings.”
• How Much Consumption Insurance beyond Self-Insurance? (2010, unknown): “Following the influential papers by Deaton and Paxson (1994) and Storesletten, Telmer, and Yaron (2004), many authors associate the growth of consumption dispersion over the life cycle to the extent of risk sharing present in an economy.”
• The Consumption Response to Income Changes (2009, unknown): “Simulation results produced by Carroll (2001) show that if consumers are impatient (r) and log income is the sum of a permanent and an i.i.d. transitory component (and if consumers face a small but positive probability of zero income in each period), the implication that transitory income shocks…”
• Intertemporal Choice and Consumption Mobility (2006, unknown): “Simulation results produced by Carroll (2001) show that with constant relative risk aversion, impatient consumers and an income process similar to the one we use, the implication of the PIH that transitory income shocks have a negligible impact on consumption still holds true.”