CONSUMPTION VOLATILITY, LIQUIDITY CONSTRAINTS AND HOUSEHOLD WELFARE

• 成果类型: Article
• 署名作者: Dogra, Keshav; Gorbachev, Olga
• 署名单位: Columbia University; University of Delaware
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12295
• 发表日期: 2016
• 页码: 2012-2037
• 关键词: euler equations; income; INEQUALITY; earnings; error; MARKET; panel

摘要

We evaluate the impact of increased income uncertainty and financial liberalisation in the US on consumption volatility and household welfare. We estimate Euler equations and measure the volatility of unpredictable changes in consumption as the squared residuals. We directly control for liquidity constraints using Survey of Consumer Finances data on access to credit, and document that despite the increase in household debt between 1983 and 2007, there was no decline in the proportion of liquidity constrained households. Consumption volatility increased significantly over this period, especially for liquidity constrained households, indicating substantial welfare losses.