Macroeconomics Commons^™

Essays On Consumption Dynamics, Shaun M. Gilyard

Graduate Theses, Dissertations, and Problem Reports

This dissertation, titled "Essays on Consumption Dynamics," comprises three chapters delving into consumer behavior within the context of household financial management. It sheds light on how consumers navigate their budgets concerning daily expenses, particularly around bill payments, and examines the potential influence of household financial holdings on the redistribution effects of monetary policy.

The first chapter delves into how consumers strategically handle their budgets in proximity to bill payments. Analyzing daily transaction-level data containing detailed expenditure information, it reveals a trend of consumers deferring non-bill expenditures until after bill payments. Spending spikes by 41% - 51% above average on the …

Three Essays On Consumption Smoothing, Logan James Miller

Graduate Theses and Dissertations

Macroeconomic theory has established that consumption smoothing leads to higher standards of living. A stable consumption path can lead to more stability and less uncertainty between periods of high and low income. However, there is a wide body of literature that shows people do not consistently smooth their consumption when exposed to adverse income shocks. This dissertation uses experimental and empirical methods to better understand the obstacles people face when trying to smooth their consumption over time. It looks to understand the differences in pairs and individuals’ ability to smooth consumption. It also explores how the household’s level of income …

Stock Market Wealth Impact On Consumption Expenditure, Ramberto Jr. Sosa Cueto

Applied Economics Theses

The purpose of this thesis is to explain the role of the stock market in determining aggregate consumer behavior. Theoretically, the life-cycle hypothesis is the main link between consumption and wealth. Additionally, a household’s corporate equities holdings form part of that wealth (a small proportion). However, stock market fluctuations account for a significant part of the variation in household wealth, because of the stock prices’ volatility.

In regression models, the estimated relationship between consumption and wealth is commonly positive and statistically significant. The empirical evidence in this paper suggests that the relationship between consumption and wealth is positive and statistically …

Stock Markets And Household Wealth: Can A Stock Market Crash Cause A Recession In The U.S. Economy?, Ishan Singh

Honors Theses

Stock market wealth effects on the level of consumption in the United States economy have been constantly debated; there is evidence for arguments for and against its prominence and its symmetry. This paper seeks to investigate the strength of its negative effect by creating models to analyze unexpected shocks to the Standard and Poor's 500 index. First, a transmission mechanism between the stock market and GDP is established through the use of second-order vector autoregressive models. Following which, theory from the life cycle model and adaptations of previous researchers' models are used to create a structural model. This paper finds …