Income and Consumer Behavior: How Does Consumption Respond to Income shocks and Do the Timing and Source of Income Matter? (ConsumeBehave)

Abstract:

Behavioral economics has dramatically altered the way economist view the decisions of consumers and investors. Evidence through numerous experiments has given good support, however, Little is still known about how good the theory is at describing actual consumer and accounting behavior in the field. This project aims at putting behavioral theory at work at explaining real consumer behaviorand reactions to changes in income streams.