The Econometric SocietyEconometrica: Jan 2015, Volume 83, Issue 1
Consumption Dynamics During Recessions
https://doi.org/10.3982/ECTA11254
p.
101-154
David Berger and Joseph Vavra
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Supplemental Material
Supplement to "Consumption Dynamics During Recessions"
This zip file contains the replication files for the manuscript.
Supplement to "Consumption Dynamics During Recessions"
This supplement extends the model to include two features which are particularly important for housing markets: rental markets and collateralized borrowing. It describes the solution for the model with fixed costs in general equilibrium. It also argues that time-series data on durable spending provides additional support for the theoretical model with fixed costs of durable adjustment. Finally it describes a representative agent version of the durable model with quadratic adjustment costs.