Reasearch
Working Paper
Consumption response to income windfalls with an inattention region (new version, rej&resubmitted @ EJ)
Abstract: Many consumers do not respond to an unanticipated income windfall. We attribute this feature to observation frictions, preventing continuous monitoring of cash-on-hand. In the model, consumers face a fixed observation cost and choose observation dates from noisy signals about expectation error. This creates an inat- tention region where consumers neither observe nor respond to shocks in cash-on- hand while the signal remains within its boundaries. Consistent with expectation data, the timing of observations follows from smooth hazard probabilities increas- ing with expectation error size. Consistent with expenditure data, more consumers respond to larger windfalls. We investigate implications of this observation channel for the marginal propensity to consume, both analytically and quantitatively.
Work in Progress
Customer information and the productivity slowdown (with Gaetano Gaballo)
Forecast Stickiness (with Luca Neri)
Optimal taxation and tax complexity with misperceptions (with Antoine Ferey)
Publication
Inattention and the Taxation Bias, with Antoine Ferey, Journal of the European Economic Association, Forthcoming.
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Non-academic publications
Boccanfuso, J., Bozio, A., Bréda, T., & Imbert, C. Les carrières des non-titulaires du secteur public: analyse rétrospective et projections. Questions retraite et solidarité–Les cahiers, (2015) et Rapport IPP n°5, Institut des politiques publiques, (2014)