The well-known Easterlin paradox points out that average happiness has remained constant
over time despite sharp rises in GNP per head. At the same time, a micro literature has …

We use data from the Panel Study of Income Dynamics to investigate how households'
portfolio allocations change in response to wealth fluctuations. Persistent habits …

A new bias-corrected estimator is developed for dynamic panel model with both fixed and
spatial effects. The estimator is asymptotically unbiased, normally distributed, and it has …

Despite its theoretical dominance, the empirical case in favor of the permanent income
hypothesis is weak. Contrary to one of its basic implications, a growing body of evidence …

This study examines household portfolio choice through the retirement transition. I show that
couples significantly decrease their stock allocations after retirement, whereas singles' …

Consumption growth is predictable, a basic violation of the permanent-income hypothesis.
This paper examines three possible explanations: rule-of-thumb behavior, in which …

We present an overlapping generations economy, populated by heterogeneous agents who
care about both consumption relative to others and the bequest they leave to their offspring …

I present a generalized model that structurally nests both “catching up with the
Joneses”(external habit) and “time nonseparable”(internal habit) preference specifications …

We present a simple model of capital accumulation where agents care about their
consumption relative to the consumption of other members of society,'envy,'In this context we …

This paper tests the cross‐sectional implications of “keeping‐up‐with‐the‐Joneses”(KUJ)
preferences in an international setting. When agents have KUJ preferences, in the presence …