Individual learning about consumption

Macroeconomic Dynamics

Volumn 5, Issue 2, 2001, Pages 255-271

  Allen, Todd W ^b   Carroll, Christopher D ^a  

^a JOHNS HOPKINS UNIVERSITY   (United States)

^b NONE

Author keywords

Buffer stock saving; Consumption; Learning; Saving; Uncertainty

Indexed keywords

EID: 0035617086     PISSN: 13651005     EISSN: None     Source Type: Journal    
DOI: 10.1017/S136510050101906X     Document Type: Article

References (36)

1. Arthur, W.B., J.H. Holland, B. LeBaron, R. Palmer & P. Tayler (1997) Asset pricing under endogenous expectations in an artificial stock market. In W.B. Arthur, S.N. Durlauf, & D. Lane (eds.), The Economy as an Evolving Complex System II. Reading, MA: Addison Wesley Longman.
2. Bernheim, D. (1996) Personal saving, information, and economic literacy: New directions for public policy. In Tax Policy for Economic Growth in the 1990s, pp. 53-78. Washington, DC: American Council for Capital Formation.
3. Bikhchandani, S., D. Hirshleifer & I. Welch (1998) Learning from the behavior of others: Conformity, fads, and informational cascades. Journal of Economic Perspectives 12(3), 151-170.
4. Browning, M.J. & A. Lusardi (1996) Household saving: Micro theories and micro facts. Journal of Economic Literature 34, 1797-1855.
5. Cagetti, M. (1999) Wealth Accumulation Over the Life Cycle and Precautionary Savings. Manuscript, University of Chicago.
6. Carroll, C.D. (1992) The buffer-stock theory of saving: Some macroeconomic evidence. Brookings Papers on Economic Activity, 1992(2), 61-156.
7. Carroll, C.D. (1994) How does future income affect current consumption? Quarterly Journal of Economics 109, 111-148 (http://www.econ.jhu.edu/people/ccarroll/howdoesfuture.pdf).
8. Carroll, C.D. (1996) Buffer Stock Saving: Some Theory. Manuscript, Johns Hopkins University (http://www.econ.jhu.edu/people/ccarroll/BufferTheory.pdf).
9. Carroll, C.D. (1997a) Buffer-stock saving and the life cycle/permanent income hypothesis. Quarterly Journal of Economics 112, 1-56 (http://www.econ.jhu.edu/people/ccarroll/BSLCPIH.pdf).
10. Carroll, C.D. (1997b) Death to the Log-Linearized Consumption Euler Equation! (And Very Poor Health to the Second Order Approximation). NBER working paper 6298 (http://www.econ.jhu. edu/people/ccarroll/death.pdf).
11. Carroll, C.D. (2001) (forthcoming) A theory of the consumption function, with and without liquidity constraints. Journal of Economic Perspectives.
12. Carroll, C.D. & M.S. Kimball (1996) On the concavity of the consumption function. Econometrica 64, 981-992 (http://www.econ.jhu.edu/people/ccarroll/concavity.pdf).
13. Deaton, A.S. (1991) Saving and liquidity constraints. Econometrica 59, 1221-1248.
14. Deaton, A.S. (1992) Understanding Consumption. New York: Oxford University Press.
15. Ellison, G. & D. Fudenberg (1995) Word-of-mouth communication and social learning. Quarterly Journal of Economics 110, 93-125.
16. Evans, G.W. & S. Honkapohja (1999) Learning Dynamics. Manuscript, University of Oregon.
17. Friedman, M.A. (1953) Essays in Positive Economics. Chicago: University of Chicago Press.
18. Gale, D. (1996) What have we learned from social learning? European Economic Review 40, 617-628.
19. Gourinchas, P.-O. & J. Parker (1999) Consumption over the life cycle. Manuscript, Princeton University.
20. Hall, R.E. (1978) Stochastic implications of the life-cycle/permanent income hypothesis: Theory and evidence. Journal of Political Economy 96, 971-987.
21. Hall, R.E. & F. Mishkin (1982) The Sensitivity of consumption to transitory income: Evidence from PSID households. Econometrica 50, 461-481.
22. Holland, J.H. (1986) Adaptation in Natural and Artificial Systems. Cambridge, MA: MIT Press.
23. Hubbard, R.G., J.S. Skinner & S.P. Zeldes (1994) The importance of precautionary motives for explaining individual and aggregate saving. Carnegie-Rochester Conference Series on Public Policy 40, 59-126.
24. Hubbard, R.G., J.S. Skinner & S.P. Zeldes (1995) Precautionary saving and social insurance. Journal of Political Economy 103, 330-399.
25. Lettau, M. (1997) Explaining the facts with adaptive agents: The case of mutual fund flows. Journal of Economic Dynamics and Control 21, 1117-1147.
26. Lettau, M. & H. Uhlig (1999) Rules of thumb and dynamic programming. American Economic Review 89, 148-174.
27. Lusardi, A. (1999) Explaining Why So Many Households Do Not Save. Manuscript, Dartmouth College.
28. Marcet, A. & TJ. Sargent (1991) Convergence of least squares learning mechanisms in self referential linear stochastic models. Journal of Economic Theory 48, 337-368.
29. Marimon, R. (1997) Learning from learning in economics. In D. Kreps & K. Wallis (eds.), Advances in Economics and Econometrics: Theory and Applications, Vol. I. Cambridge, UK: Cambridge University Press.
30. McCarthy, J. (1995) Imperfect insurance and differing propensities to consume across households. Journal of Monetary Economics 36, 301-327.
31. Parker, J. (1999) The reaction of household consumption to predictable changes in social security taxes. American Economic Review 89, 959-973.
32. Samuelson, L. (1997) Evolutionary Games and Equilibrium Selection. Cambridge, MA: MIT Press.
33. Sargent, T.J. (1993) Bounded Rationality in Macroeconomics. Oxford, Oxford Unversity Press.
34. Souleles, N.S. (1999) The response of household consumption to income tax refunds. American Economic Review 89, 947-958.
35. Young, H.P. (1997) Learning and Evolution in Games. Princeton, NJ: Princeton University Press.
36. Zeldes, S.P. (1989) Optimal consumption with stochastic income: Deviations from certainty equivalence. Quarterly Journal of Economics 104, 275-298.