Consumption and Saving: Models of Intertemporal Allocation and Their Implications for Public Policy
- (pp. 693-751)
AbstractThis paper provides a critical survey of the large literature on the life cycle model of consumption, both from an empirical and a theoretical point of view. It discusses several approaches that have been taken in the literature to bring the model to the data, their empirical successes, and their failures. Finally, the paper reviews a number of changes to the standard life cycle model that could help solve the remaining empirical puzzles.
Citation2010. "Consumption and Saving: Models of Intertemporal Allocation and Their Implications for Public Policy." Journal of Economic Literature, 48(3): 693-751. DOI: 10.1257/jel.48.3.693
- D91 Intertemporal Consumer Choice; Life Cycle Models and Saving
- E21 Macroeconomics: Consumption; Saving; Wealth