ECB: Household Consumption and Financial Choice

Lectures

• 1. 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.*

  2. 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

  3. 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.

  4. 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