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dc.contributor.authorReis, Ricardoen_US
dc.date.accessioned2009-01-29T16:07:18Z-
dc.date.available2009-01-29T16:07:18Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/23459-
dc.description.abstractThis paper studies the consumption decisions of agents who face costs of acquiring, absorbing and processing information. These consumers rationally choose to only sporadically update their information and re-compute their optimal consumption plans. In between updating dates, they remain inattentive. This behavior implies that news disperses slowly throughout the population, so events have a gradual and delayed effect on aggregate consumption. The model predicts that aggregate consumption adjusts slowly to shocks, and is able to explain the excess sensitivity and excess smoothness puzzles. In addition, individual consumption is sensitive to ordinary and unexpected past news, but it is not sensitive to extraordinary or predictable events. The model further predicts that some people rationally choose to not plan, live hand-to-mouth, and save less, while other people sporadically update their plans. The longer are these plans, the more they save. Evidence using U.S. aggregate and microeconomic data generally supports these predictions.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesDiscussion papers in economics / Princeton University, Woodrow Wilson School of Public and International Affairs 232en_US
dc.subject.jelD1en_US
dc.subject.jelE2en_US
dc.subject.jelD9en_US
dc.subject.jelD8en_US
dc.subject.ddc330en_US
dc.subject.stwKonsumentenverhaltenen_US
dc.subject.stwInformationsverhaltenen_US
dc.subject.stwGesamtwirtschaftlicher Konsumen_US
dc.subject.stwTheorieen_US
dc.subject.stwUSAen_US
dc.titleInattentive Consumersen_US
dc.typeWorking Paperen_US
dc.identifier.ppn504017527en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Discussion Papers in Economics, Woodrow Wilson School of Public and International Affairs (WWS), Princeton University

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