DEPARTMENT OF ECONOMICS DISCUSSION PAPER SERIES Euler Equations, Subjective Expectations and Income Shocks
DEPARTMENT OF ECONOMICS DISCUSSION PAPER SERIES Euler Equations, Subjective Expectations and Income Shocks
复制标题
经济系讨论论文系列欧拉方程、主观预期和收入冲击
DOI：
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发表时间：
2017
期刊：
影响因子：
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通讯作者：
Krisztina Molnár
中科院分区：
文献类型：
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作者：
O. Attanasio;Agnes Kovacs;Krisztina Molnár
In this paper, we make three substantive contributions: first, we use elicited subjective income expectations to identify the levels of permanent and transitory income shocks in a life-cycle framework; second, we use these shocks to assess whether households’ consumption is insulated from them; third, we use the shock data to estimate an Euler equation for consumption. We find that households are able to smooth transitory shocks, but adjust their consumption in response to permanent shocks, albeit not fully. The estimates of the Euler equation parameters with and without expectational errors are similar, which is consistent with rational expectations. We break new ground by combining data on subjective expectations about future income from the Michigan Survey with micro data on actual income from the Consumer Expenditure Survey.
影响因子：
12.6
作者：
Attanasio, Orazio P.;Weber, Guglielmo
通讯作者：
Weber, Guglielmo