Income and Consumption: A Micro Semistructural Analysis with Pervasive Heterogeneity

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Standard

Income and Consumption : A Micro Semistructural Analysis with Pervasive Heterogeneity. / Alan, Sule; Browning, Martin; Ejrnæs, Mette.

I: Journal of Political Economy, Bind 126, Nr. 5, 10.2018, s. 1827-1864.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningfagfællebedømt

Harvard

Alan, S, Browning, M & Ejrnæs, M 2018, 'Income and Consumption: A Micro Semistructural Analysis with Pervasive Heterogeneity', Journal of Political Economy, bind 126, nr. 5, s. 1827-1864. https://doi.org/10.1086/699186

APA

Alan, S., Browning, M., & Ejrnæs, M. (2018). Income and Consumption: A Micro Semistructural Analysis with Pervasive Heterogeneity. Journal of Political Economy, 126(5), 1827-1864. https://doi.org/10.1086/699186

Vancouver

Alan S, Browning M, Ejrnæs M. Income and Consumption: A Micro Semistructural Analysis with Pervasive Heterogeneity. Journal of Political Economy. 2018 okt;126(5):1827-1864. https://doi.org/10.1086/699186

Author

Alan, Sule ; Browning, Martin ; Ejrnæs, Mette. / Income and Consumption : A Micro Semistructural Analysis with Pervasive Heterogeneity. I: Journal of Political Economy. 2018 ; Bind 126, Nr. 5. s. 1827-1864.

Bibtex

@article{2f5f75263a3d4c9e808b381d27051dfc,
title = "Income and Consumption: A Micro Semistructural Analysis with Pervasive Heterogeneity",
abstract = "We develop a model of consumption and income that allows for pervasive heterogeneity in the parameters of both processes. Introducing codependence between household income parameters and preference parameters, we also allow for heterogeneity in the impact of income shocks on consumption. We estimate the parameters of the model using a sample from the Panel Study of Income Dynamics, covering the period 1968–2009. We find considerable codependent heterogeneity in the parameters governing income and consumption processes. Our results suggest a great deal of heterogeneity in the reaction of consumption to income shocks, highlighting the heterogeneity in the self-insurance available to households.",
author = "Sule Alan and Martin Browning and Mette Ejrn{\ae}s",
year = "2018",
month = "10",
doi = "10.1086/699186",
language = "English",
volume = "126",
pages = "1827--1864",
journal = "Journal of Political Economy",
issn = "0022-3808",
publisher = "University of Chicago Press",
number = "5",

}

RIS

TY - JOUR

T1 - Income and Consumption

T2 - A Micro Semistructural Analysis with Pervasive Heterogeneity

AU - Alan, Sule

AU - Browning, Martin

AU - Ejrnæs, Mette

PY - 2018/10

Y1 - 2018/10

N2 - We develop a model of consumption and income that allows for pervasive heterogeneity in the parameters of both processes. Introducing codependence between household income parameters and preference parameters, we also allow for heterogeneity in the impact of income shocks on consumption. We estimate the parameters of the model using a sample from the Panel Study of Income Dynamics, covering the period 1968–2009. We find considerable codependent heterogeneity in the parameters governing income and consumption processes. Our results suggest a great deal of heterogeneity in the reaction of consumption to income shocks, highlighting the heterogeneity in the self-insurance available to households.

AB - We develop a model of consumption and income that allows for pervasive heterogeneity in the parameters of both processes. Introducing codependence between household income parameters and preference parameters, we also allow for heterogeneity in the impact of income shocks on consumption. We estimate the parameters of the model using a sample from the Panel Study of Income Dynamics, covering the period 1968–2009. We find considerable codependent heterogeneity in the parameters governing income and consumption processes. Our results suggest a great deal of heterogeneity in the reaction of consumption to income shocks, highlighting the heterogeneity in the self-insurance available to households.

U2 - 10.1086/699186

DO - 10.1086/699186

M3 - Journal article

VL - 126

SP - 1827

EP - 1864

JO - Journal of Political Economy

JF - Journal of Political Economy

SN - 0022-3808

IS - 5

ER -

ID: 177392457