This chapter reviews the behavior of financial asset prices in relation to consumption. The
chapter lists some important stylized facts that characterize US data, and relates them to …

This paper reviews the status quo of the empirical literature about the elasticity of
intertemporal substitution (EIS) in consumption. Aiming to answer the question what the true …

We provide a Keynesian growth theory in which pessimistic expectations can lead to very
persistent, or even permanent, slumps characterized by high unemployment and weak …

We study the effects of a credit crunch on consumer spending in a heterogeneous-agent
incomplete-market model. After an unexpected permanent tightening in consumers' …

We collect 2735 estimates of the elasticity of intertemporal substitution in consumption from
169 published studies that cover 104 countries during different time periods. The estimates …

I examine 2,735 estimates of the elasticity of intertemporal substitution in consumption (EIS)
reported in 169 published studies. The literature shows strong selective reporting …

This paper provides a critical survey of the large literature on the life cycle model of
consumption, both from an empirical and a theoretical point of view. It discusses several …

This paper considers a consumption-based asset pricing model where housing is explicitly
modeled both as an asset and as a consumption good. Nonseparable preferences describe …

When utility is nonseparable in nondurable and durable consumption and the elasticity of
substitution between the two consumption goods is sufficiently high, marginal utility rises …

The author surveys work on the intersection between macroeconomics and finance. The
challenge is to find the right measure of" bad times," rises in the marginal value of wealth, so …