scholarly journals Consumption Smoothing and Vulnerability in Russia

2007 ◽  
Author(s):  
Christopher J. Gerry ◽  
Carmen A. Li
Keyword(s):  
Consumption Smoothing

Financial Reforms and Consumption Smoothing

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Martin Boileau ◽  
Tianxiao Zheng
Keyword(s):  
South Africa ◽  
South Korea ◽  
Consumer Credit ◽  
Dynamic Stochastic General Equilibrium ◽  
Consumption Smoothing ◽  
Empirical Literature ◽  
Lower Income ◽  
Financial Reforms ◽  
Collateral Constraint ◽  
Dynamic Stochastic

Abstract We study how financial reforms affect the extent of consumption smoothing in a dynamic stochastic general equilibrium model of an emerging economy. Consistent with the empirical literature and reform efforts in South Korea and South Africa, we emphasize the relation between consumer credit and durable purchases, and model reforms as the relaxation of the collateral constraint on lower income households. We find that the relaxation of the collateral constraint accounts for a substantial share of the decline in consumption smoothing experienced in South Korea and South Africa.

Consumption Smoothing in the Zone Lacustre, Mali

2005 ◽  
Vol 14 (4) ◽  
pp. 489-519 ◽  
Author(s):  
Sarah Harrower ◽  
John Hoddinott
Keyword(s):  
Consumption Smoothing

Foreign Aid and Consumption Smoothing: Evidence from Global Food Aid

2004 ◽  
Vol 8 (3) ◽  
pp. 379-390 ◽  
Author(s):  
Sanjeev Gupta ◽  
Benedict Clements ◽  
Erwin R. Tiongson
Keyword(s):  
Foreign Aid ◽  
Consumption Smoothing ◽  
Food Aid ◽  
Global Food

Consumption Smoothing and Optimal Savings

2012 ◽  
pp. 46-78
Author(s):  
Narat Charupat ◽  
Huaxiong Huang ◽  
Moshe A. Milevsky
Keyword(s):  
Consumption Smoothing

scholarly journals An Experimental Test of the Lucas Asset Pricing Model

2018 ◽  
Vol 86 (2) ◽  
pp. 627-667 ◽  
Author(s):  
Sean Crockett ◽  
John Duffy ◽  
Yehuda Izhakian
Keyword(s):  
Asset Pricing ◽  
Asset Price ◽  
Consumption Smoothing ◽  
Asset Price Bubbles ◽  
Price Bubbles ◽  
Fundamental Value ◽  
Experimental Treatments ◽  
Marginal Returns ◽  
Dynamic Asset Pricing ◽  
Fundamental Price

Abstract We implement a dynamic asset pricing experiment in the spirit of Lucas (1978) with storable assets and non-storable cash. In the first treatment, we impose diminishing marginal returns to cash to incentivize consumption smoothing across periods. We find that subjects use the asset to smooth consumption, although the asset trades at a discount relative to the risk-neutral fundamental price. This under-pricing is a departure from the asset price “bubbles” observed in the large experimental asset pricing literature originating with Smith et al. (1988) and can be rationalized by considering subjects’ risk aversion with respect to uncertain money earnings. In a second treatment, with no induced motivation for trade à la the Smith et al. design, we find that the asset trades at a premium relative to its expected value and that shareholdings are highly concentrated. Elimination of asset price uncertainty in additional experimental treatments serves to reinforce the same observations, and suggests that speculative behaviour explains the departure of prices from fundamental value in the absence of a consumption-smoothing motive for asset trades.

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