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Consumption and Saving: Models of Intertemporal Allocation and Their Implications for Public Policy

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  • Orazio P. Attanasio
  • Guglielmo Weber

Abstract

This 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.

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Article provided by American Economic Association in its journal Journal of Economic Literature.

Volume (Year): 48 (2010)
Issue (Month): 3 (September)
Pages: 693-751

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Handle: RePEc:aea:jeclit:v:48:y:2010:i:3:p:693-751

Note: DOI: 10.1257/jel.48.3.693
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  1. Attanasio and Weber Review of Theories of Consumption and Savings
    by Liam Delaney in Geary Behaviour Centre on 2010-08-30 20:43:00
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