Asymmetric Consumption Effects of Transitory Income Shocks*

By Dimitris Christelis, Dimitris Georgarakos, Tullio Jappelli, Luigi Pistaferri, M.C.J. van Rooij. Economic Journal, 2019

143 citations recorded by the source corpus.

We use the responses of a representative sample of Dutch households to survey questions that ask how much their consumption would change in response to unexpected, transitory income shocks (positive or negative). The questionnaire also distinguishes between relatively small income changes (a one-month increase or drop in income), and relatively larger ones (equal to three-months' income). The results are broadly in line with models of intertemporal choice with precautionary saving, borrowing constraints and finite horizons.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/640dede73ae1d2f155644118937d1e4616956e8a

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

MPC Heterogeneity and Household Balance Sheets (2016, unknown): “(2018) and Christelis et al. (2017). Both use survey evidence on hypothetical income shocks.”
What Would You Do with $500? Spending Responses to Gains, Losses, News, and Loans (2018, background): “The closest paper to ours, fielded contemporaneously, is Christelis et al. (2019) who also use hypothetical scenarios (in a Dutch household survey) to study sign and size asymmetry.”