Evaluating how predictable errors in expected income affect consumption

References

• Attanasio , O . 1998 . A cohort analysis of saving behaviour by US households . Journal of Human Resources , 33 : 575 – 609 .
   Web of Science ®Google Scholar
• Bovi , M . 2009 . Economic versus psychological forecasting: evidence from consumer confidence surveys . Journal of Economic Psychology , 30 : 563 – 74 .
   Web of Science ®Google Scholar
• Brown , S and Taylor , K . 2006 . Financial expectations, consumption and saving: a microeconomic analysis . Fiscal Studies , 27 : 313 – 38 .
   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
• Carroll , CD . 1992 . The Buffer–Stock theory of saving: some macroeconomic evidence . Brookings Papers on Economic Activity , 2 : 61 – 156 .
   Google Scholar
• Chamberlain , G . 1984 . “ Panel data ” . In Handbook of Econometrics , Edited by: Griliches , Z and Intrilligator , MD . Vol. II , 1247 – 318 . Amsterdam : North-Holland .
   Google Scholar
• Dominitz , J . 1998 . Earnings expectations, revisions, and realizations . Review of Economics and Statistics , 80 : 374 – 88 .
   Web of Science ®Google Scholar
• Dominitz , J . 2001 . Estimation of income expectations models using expectations and realization data . Journal of Econometrics , 102 : 165 – 95 .
   Web of Science ®Google Scholar
• Dominitz , J and Manski , C . 1997 . Using expectations data to study subjective income expectations . Journal of the American Statistical Association , 92 : 855 – 67 .
   Web of Science ®Google Scholar
• Flavin , M . 1991 . The joint consumption/asset demand decision: a case study in robust estimation , NBER Working Paper No. 3802 .
   Google Scholar
• Flavin , M . 1999 . Robust estimation of the joint consumption/asset demand decision , NBER Working Paper No. 7011 .
   Google Scholar
• Friedman , M . 1957 . A Theory of the Consumption Function , Princetown : Princetown University Press .
   Google Scholar
• Garcia , R , Lusardi , A and Ng , S . 1997 . Excess sensitivity and asymmetries in consumption: an empirical investigation . Journal of Money, Credit and Banking , 29 : 154 – 76 .
   Web of Science ®Google Scholar
• Hall , R . 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 , R and Mishkin , F . 1982 . The sensitivity of consumption to transitory income: estimates from panel data on households . Econometrica , 50 : 461 – 77 .
   Web of Science ®Google Scholar
• Hamilton , LC . 1991 . How robust is robust regression? . Stata Technical Bulletin , 2 : 21 – 6 .
   Google Scholar
• Jappelli , T , Pischke , J and Souleles , 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
• Jappelli , T and Pistaferri , L . 2010 . The consumption response to income changes . Annual Review of Economics , 2 : 479 – 506 .
   Web of Science ®Google Scholar
• Jappelli , T and Pistaferri , L . 2011 . Financial integration and consumption smoothing . The Economic Journal , 121 : 678 – 706 .
   Web of Science ®Google Scholar
• Johnson , KW and Li , G . 2010 . The debt-payment-to-income ratio as an indicator of borrowing constraints: evidence from two household surveys . Journal of Money, Credit and Banking , 42 : 1373 – 90 .
   Web of Science ®Google Scholar
• Kapteyn , A , Kleinjans , K and Van Soest , A . 2009 . Intertemporal consumption with directly measured welfare functions and subjective expectations . Journal of Economic behaviour and Organization , 72 : 425 – 37 .
   PubMed Web of Science ®Google Scholar
• Kaufmann , K and Pistaferri , L . 2009 . Disentangling insurance and information in intertemporal consumption choices . American Economic Review: Paper and Proceedings , 99 : 387 – 92 .
   Web of Science ®Google Scholar
• Li , G . 1985 . “ Robust regression ” . In Exploring Data Tables, Trends, and Shapes , Edited by: Hoaglin , DC , Mosteller , F and Tukey , JW . 281 – 340 . New York , , NY : John Wiley and Sons .
   Google Scholar
• Ludvigson , M and Paxson , C . 2001 . Approximation bias in linearized Euler Equations . Review of Economics and Statistics , 83 : 242 – 56 .
   Web of Science ®Google Scholar
• Muth , F . 1961 . Rational expectations and the theory of price movements . Econometrica , 29 : 315 – 35 .
   Web of Science ®Google Scholar
• Runkle , ED . 1991 . Liquidity constraints and the permanent-income hypothesis: evidence from panel data . Journal of Monetary Economics , 27 : 73 – 98 .
   Web of Science ®Google Scholar
• Souleles , NS . 2004 . Expectations, heterogeneous forecast errors, and consumption: micro evidence from the Michigan consumer sentiment surveys . Journal of Money, Credit and Banking , 36 : 39 – 72 .
   Web of Science ®Google Scholar