A model of expenditure shocks

IF 4.1 2区经济学 Q1 BUSINESS, FINANCE

Journal of Monetary Economics Pub Date : 2025-09-01 Epub Date: 2025-07-22 DOI:10.1016/j.jmoneco.2025.103807

Jorge Miranda-Pinto , Daniel Murphy , Kieran James Walsh , Eric R. Young

引用次数: 0

Abstract

We introduce a new quantitative model of household expenditure shocks to rationalize the common anecdote of a low-income and low-liquidity household that uses additional income to save (repay debt) rather than consume. Our model also rationalizes key features of the joint dynamics of household-level consumption and income, including our finding that consumption is volatile yet disconnected from income, especially for households experiencing episodes of high consumption. The key feature of our model is stochastic consumption thresholds that yield large utility costs if violated. The stochastic thresholds increase the welfare cost of income fluctuations by an order of magnitude.

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支出冲击模型

我们引入了一个新的家庭支出冲击定量模型，以合理化低收入和低流动性家庭使用额外收入储蓄（偿还债务）而不是消费的常见轶事。我们的模型还合理化了家庭层面消费和收入联合动态的关键特征，包括我们的发现，消费是不稳定的，但与收入脱节，特别是对于经历高消费时期的家庭。我们模型的关键特征是随机消费阈值，如果违反，将产生巨大的效用成本。随机阈值使收入波动的福利成本增加了一个数量级。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Monetary Economics Multiple-

CiteScore

7.20

自引率

4.90%

发文量

审稿时长

74 days

期刊介绍： The profession has witnessed over the past twenty years a remarkable expansion of research activities bearing on problems in the broader field of monetary economics. The strong interest in monetary analysis has been increasingly matched in recent years by the growing attention to the working and structure of financial institutions. The role of various institutional arrangements, the consequences of specific changes in banking structure and the welfare aspects of structural policies have attracted an increasing interest in the profession. There has also been a growing attention to the operation of credit markets and to various aspects in the behavior of rates of return on assets. The Journal of Monetary Economics provides a specialized forum for the publication of this research.