ECB: Household Consumption and Financial Choice
Lectures
Overview
Asset Pricing Example
Cake Eating Problem
Hall, R.,"Stochastic Implications of the Life Cycle-Permanent Income Hypothesis" JPE, 1978.
Hansen, L. and K. Singleton, "Generalized Instrumental Variables Estimation of Nonlinear Rational Expectations Models," Eca., 1982.*
Financial Choice
Alan, S. "Entry Costs and Stock Market Participation over the Life Cycle," RED, 2006
Campbell, J "Household Finance", Journal of Finance, 2006
Cooper and Zhu"Household Finance over the Life-Cycle: What does Education Contribute?"
(NBER WP 20684, 2014), http://www.nber.org/papers/w20684*
Gomes, J. and A. Michaelides, "Optimal life-cycle asset allocation: understanding the empirical evidence", Journal of Finance, 2005
Gome, J. and A. Michaelides, "Asset Pricing with Limited Risk Sharing and Heterogenous Agents," Review of Financial Studies, 2008
Borrowing Constraints
Deaton, "Savings and Liquidity Constraints," Eca., 1991.
Zeldes, "Consumption and Liquidity Constraints: an empirical investigation," JPE, 1989.
Cocco, Gomes, Maenhout,"Consumption and Portfolio Choice over the Life Cycle," Review of Financial Studies, 2005*
Liveshits,I. , MacGee, j. and M. Tertilt "Consumer Bankruptcy: A Fresh Start"(AER, 2007)*
Chatterjee, S. and D. Corbae and M. Nakajima, V. Rios-Rull "A quantitative theory of unsecured consumer credit with risk of default," Eca., 2007.
Durable Goods and Housing
Adda and Cooper, "Balladurette and Juppette: A discrete analysis of scrapping subsidies," JPE, 2000*
Fernandez-Vilaverde and Krueger, "Consumption and Saving over the Life Cycle: How Important are Consumer Durables?" MD, 2011*
Gomes, J., "Portfolio Choice in the Presence of Housing", Review of Financial Studies, 2005