This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 101 No. 5 (August 2011)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Did Household Consumption Become More Volatile?

Article Citation

Gorbachev, Olga. 2011. "Did Household Consumption Become More Volatile?" American Economic Review, 101(5): 2248-70.

DOI: 10.1257/aer.101.5.2248

Abstract

I show that after accounting for predictable variation arising from movements in real interest rates, preferences and income shocks, liquidity constraints and measurement errors, volatility of household consumption in the US increased by 25 percent between 1970 and 2004. The increase was lower than that of volatility of family income. Nonwhite and those with less than 13 years of education, for whom there was no differential increase in income volatility, experienced a significantly larger increase in volatility of household consumption. Substantial differences in wealth and access to credit markets point to the main reason for this divide. JEL: D12, D14, E21, J15

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (26.60 MB) | Online Appendix (119.56 KB)

Authors

Gorbachev, Olga (U DE)

JEL Classifications

D12: Consumer Economics: Empirical Analysis
D14: Personal Finance
E21: Macroeconomics: Consumption; Saving; Wealth
J15: Economics of Minorities and Races; Non-labor Discrimination


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us