We review different empirical approaches that researchers have taken to estimate how
consumption responds to income changes. We critically evaluate the empirical evidence on …

Why are some people wealthy while others are poor? To what extent can governments affect
inequality? Which instruments should they use? Answering these questions requires …

Uncertainty is an amorphous concept. It reflects uncertainty in the minds of consumers,
managers, and policymakers about possible futures. It is also a broad concept, including …

A number of panel unit root tests that allow for cross‐section dependence have been
proposed in the literature that use orthogonalization type procedures to asymptotically …

Uncertainty appears to jump up after major shocks like the Cuban Missile crisis, the
assassination of JFK, the OPEC I oil‐price shock, and the 9/11 terrorist attacks. This paper …

We study the role of establishment-specific wage premiums in generating recent increases
in West German wage inequality. Models with additive fixed effects for workers and …

What happens if an employer cuts wages by one cent? Much of labor economics is built on
the assumption that all the workers will quit immediately. Here, Alan Manning mounts a …

Macroeconomics was born as a distinct field in the 1940's, as a part of the intellectual
response to the Great Depression. The term then referred to the body of knowledge and …

This paper examines the link between income and consumption inequality. We create panel
data on consumption for the Panel Study of Income Dynamics using an imputation …

We study individual male earnings dynamics over the life cycle using panel data on millions
of US workers. Using nonparametric methods, we first show that the distribution of earnings …