Further evidence of excess sensitivity of consumption? Nonseparability among goods and heterogeneity across households

References

• Altonji , JG and Siow , A . 1987 . Testing the response of consumption to income changes with (noisy) panel data . Quarterly Journal of Economics , 102 : 293 – 328 .
   Web of Science ®Google Scholar
• Arellano , M and Bond , S . 1991 . Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations . Review of Economic Studies , 58 : 277 – 97 .
   Web of Science ®Google Scholar
• Arellano , M and Bond , S . 1998 . Dynamic panel data estimation using DPD98 for Gauss , Mimeo .
   Google Scholar
• Attanasio , OP . 1999 . “ Consumption ” . In Handbook in Macroeconomics Edited by: Taylor , JB and Woodford , M . 741 – 812 . North-Holland Chapter 11
   Google Scholar
• Attanasio , OP and Browning , M . 1995 . Consumption over the life cycle and over the business cycle . American Economic Review , 85 : 1187 – 237 .
   Google Scholar
• Attanasio , OP and Weber , G . 1995 . Is consumption growth consistent with intertemporal optimization? Evidence from the consumer expenditure survey . Journal of Political Economy , 103 : 1121 – 57 .
   Web of Science ®Google Scholar
• Bound , J , Jaeger , DA and Baker , R . 1995 . Problems with instrumental variables estimation when the correlation between the instruments and the endogenous explanatory variable is weak . Journal of the American Statistical Association , 90 : 443 – 50 .
   Web of Science ®Google Scholar
• Browning , M and Collado , MD . 2001 . The response of expenditures to anticipated income changes: panel data estimates . American Economic Review , 91 : 681 – 92 .
   Web of Science ®Google Scholar
• Browning , M and Crossley , TF . 1999 . “ Shocks, stocks and socks: consumption smoothing and the replacement of durables during an unemployment spell ” . Technical Report Working Papers in Economics and Econometrics, 376, School of Economics, ANU
   Google Scholar
• Browning , M and Crossley , TF . 2001 . The life-cycle model of consumption and saving . Journal of Economic Perspectives , 15 : 3 – 22 .
   Web of Science ®Google Scholar
• Browning , M and Lusardi , A . 1996 . Household saving: micro theories and micro facts . Journal of Economic Literature , 34 : 1797 – 855 .
   Web of Science ®Google Scholar
• Brugiavini , A and Weber , G . 1994 . “ Durables and non-durables consumption: evidence from italian household data ” . In Saving and the Accumulation of Wealth. Essays on Italian Household and Government Saving Behavior , Edited by: Ando , A , Guiso , L and Visco , I . 305 – 29 . Cambridge : Cambridge University Press .
   Google Scholar
• Campbell , JY and Mankiw , G . 1989 . “ Consumption, income and interest rates: reinterpreting the time series evidence ” . In NBER Macroeconomics Annual , Edited by: Blanchard , OJ and Fisher , S . 185 – 216 . Cambridge, MA : MIT Press .
   Google Scholar
• Chamberlain , G . 1984 . “ Panel Data, in ” . In Handbook of Econometrics Edited by: Griliches , Z and Intriligator , MD . Vol. 2 , 1247 – 318 . North-Holland, Amsterdam
   Google Scholar
• Deaton , A . 1992 . Understanding Consumption , Oxford : Oxford University Press .
   Google Scholar
• DeJuan , JS and Seater , J . 1999 . The permanent income hypothesis: evidence from the consumer expenditure survey . Journal of Monetary Economics , 43 : 351 – 76 .
   Google Scholar
• Dow , JP . 1993 . Durability and tests of the permanent income hypothesis using partially disaggregated consumption data . Applied Economics , 25 : 627 – 33 .
   Web of Science ®Google Scholar
• Flavin , MA . 1981 . The adjustment of consumption to changing expectations about future income . Journal of Political Economy , 89 : 974 – 1009 .
   Web of Science ®Google Scholar
• García , A . 1999 . Consumption of Spanish households: evidence from Cohort Data . Applied Economics , 31 : 841 – 55 .
   Web of Science ®Google Scholar
• Gourinchas , P-O and Parker , JA . 2002 . Consumption over the life cycle . Econometrica , 70 : 47 – 89 .
   Web of Science ®Google Scholar
• Hall , RE . 1978 . Stochastic Implications of the life cycle-permanent income hypothesis: theory and evidence . Journal of Political Economy , 86 : 971 – 87 .
   Web of Science ®Google Scholar
• Hall , RE and Mishkin , FS . 1982 . The sensitivity of consumption to transitory income: estimates from panel data on households . Econometrica , 50 : 461 – 82 .
   Web of Science ®Google Scholar
• Hansen , LP and Singleton , KJ . 1982 . Generalized instrumental variables estimators of nonlinear rational expectations models . Econometrica , 50 : 1269 – 86 .
   Web of Science ®Google Scholar
• Hayashi , F . 1982 . The permanent income hypothesis: estimation and testing by instrumental variables . Journal of Political Economy , 90 : 895 – 916 .
   Web of Science ®Google Scholar
• Heckman , JJ . 2001 . Micro data, heterogeneity, and the evaluation of public policy: nobel lecture . Journal of Political Economy , 109 : 673 – 711 .
   Web of Science ®Google Scholar
• Hsieh , C-T . 2003 . Do consumers react to anticipated income shocks? Evidence from the Alaska permanent fund . American Economic Review , 93 : 397 – 405 .
   Web of Science ®Google Scholar
• Jappelli , T . 1990 . Who is liquidity constrained in the U.S. economy? . Quarterly Journal of Economics , 105 : 219 – 34 .
   Web of Science ®Google Scholar
• Jappelli , T and Fissel , G . 1990 . Do liquidity constraints vary over time? Evidence from survey and panel data . Journal of Money, Credit and Banking , 22 : 253 – 62 .
   Google Scholar
• Jappelli , T , Pischke , JS and Soulesles , NS . 1998 . Testing for liquidity constraints in Euler equations with complementary data sources . Review of Economics and statistics , 80 : 251 – 62 .
   Web of Science ®Google Scholar
• Jappelli , T and Pistaferri , L . 2000 . Using subjective income expectations to test for excess sensitivity of consumption to predicted income growth . European Economic Review , 44 : 337 – 58 .
   Web of Science ®Google Scholar
• Lage , MJ . 1991 . Sensitivity of tests of the PIH to alternative consumption proxies . Economics Letters , 36 : 429 – 33 .
   Web of Science ®Google Scholar
• Lee , H-K and Kong , M-K . 2000 . Consumption of durable goods and tests of the permanent income hypothesis: evidence from Korean macro data . Applied Economics , 32 : 39 – 44 .
   Web of Science ®Google Scholar
• Levenson , AR . 1996 . Do consumers respond to future income shocks? Evidence from Social Security reform in Taiwan . Journal of Public Economics , 62 : 275 – 95 .
   Google Scholar
• Lusardi , A . 1996 . Permanent income, current income, and consumption: evidence from two data panel sets . Journal of Business and Economic Statistics , 14 : 81 – 90 .
   Web of Science ®Google Scholar
• Mariger , RP and Shaw , K . 1993 . Unanticipated aggregate disturbances and tests of the life-cycle model using panel data . The Review of Economics and Statistics , 75 : 48 – 56 .
   Web of Science ®Google Scholar
• Parker , J . 1999 . The reaction of household consumption to predictable changes in Social Security taxes . American Economic Review , 89 : 959 – 73 .
   Web of Science ®Google Scholar
• Paxson , CH . 1993 . Consumption and income seasonality in Thailand . Journal of Political Economy , 101 : 39 – 72 .
   Web of Science ®Google Scholar
• Poterba , JM . 1988 . Are consumers forward looking? Evidence from fiscal experiments . AEA Papers and Proceedings , 78 : 413 – 18 .
   Web of Science ®Google Scholar
• Runkle , DE . 1991 . Liquidity constraints and the permanent income hypothesis . Journal of Monetary Economics , 27 : 73 – 98 .
   Web of Science ®Google Scholar
• Shapiro , MD and Slemrod , J . 1995 . Consumer response to the timing of income: evidence from in tax withholding . American Economic Review , 85 : 274 – 83 .
   Web of Science ®Google Scholar
• Shea , J . 1994 . Should we test the life cycle-permanent income hypothesis with food consumption data? . Economics Letters , 45 : 63 – 8 .
   Google Scholar
• Shea , J . 1995 . Union contracts and the life-cycle/permanent-income hypothesis . American Economic Review , 85 : 186 – 200 .
   Web of Science ®Google Scholar
• Soulesles , NS . 1999 . The response of household consumption to income tax refunds . American Economic Review , 89 : 947 – 58 .
   Google Scholar
• Soulesles , NS . 2002 . Consumer response to the Reagan tax cuts . Journal of Public Economics , 85 : 99 – 120 .
   Google Scholar
• Stephens , M. Jr . 2003 . ‘3rd of the month’: do Social Security recipients smooth consumption between checks? . American Economic Review , 93 : 406 – 22 .
   Web of Science ®Google Scholar
• Stephens , M Jr . Paycheck receipt and the timing of consumption . The Economic Journal , 116 – 680 .
   Google Scholar
• Thaler , RH . 1990 . Anomalies: saving, fungibility, and mental accounts . Journal of Economic Perspectives , 4 : 193 – 205 .
   Web of Science ®Google Scholar
• Villagomez , FA . 1997 . Private saving, interest rates and liquidity constraints in LDCs: recent evidence . Applied Economics , 29 : 607 – 15 .
   Web of Science ®Google Scholar
• Watanabe , K , Watanabe , T and Watanabe , T . 2001 . Tax policy and consumer spending: evidence from Japanese fiscal experiments . Journal of International Economics , 53 : 261 – 81 .
   Google Scholar
• Wilcox , DW . 1989 . Social Security benefits, consumption expenditure, and the life cycle hypothesis . Journal of Political Economy , 97 : 305 – 46 .
   Google Scholar
• Wirjanto , TS . 1996 . An empirical investigation into the permanent income hypothesis: further evidence from the Canadian data . Applied Economics , 28 : 1451 – 61 .
   Web of Science ®Google Scholar
• Zeldes , SP . 1989a . Optimal consumption with stochastic income: deviations from certainty equivalence . Quarterly Journal of Economics , 104 : 275 – 98 .
   Web of Science ®Google Scholar
• Zeldes , SP . 1989b . Consumption and liquidity constraints: an empirical investigation . Journal of Political Economy , 97 : 305 – 46 .
   Web of Science ®Google Scholar
• Ziliak , JP . 1998 . Does the choice of consumption matter? An application to the permanent-income hypothesis . Journal of Monetary Economics , 41 : 201 – 16 .
   Google Scholar