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Cited by 732Monetary Policy and Economic ImpactFinancial Literacy, Pension, Retirement AnalysisEconomic Theory and Policy

The DOI matches its Crossref record; 83 of the 86 references it cites were found in a registry or an index.

The Consumption Response to Income Changes

Jappelli, Tullio, Pistaferri, Luigi·2010·Annual Review of Economics
DOI 10.1146/annurev.economics.050708.142933
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Abstract

We review different empirical approaches that researchers have taken to estimate how consumption responds to income changes. We critically evaluate the empirical evidence on the sensitivity of consumption to predicted income changes, distinguishing between the traditional excess sensitivity tests and the effect of predicted income increases and income declines. We also review studies that attempt to estimate the marginal propensity to consume out of income shocks, distinguishing between three different approaches: identifying episodes in which income changes unexpectedly, relying on the covariance restrictions that the theory imposes on the joint behavior of consumption and income growth, and combining realizations and expectations of income or consumption in surveys in which data on subjective expectations are available.

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Research works printed but not linked: 7

  1. 10.2139/ssrn.1288903 · DOI
  2. Banks J, 1998, Am. Econ. Rev., 88, 769
  3. Bodkin R, 1959, Am. Econ. Rev., 49, 602
  4. Gruber J, 1997, Am. Econ. Rev., 87, 192
  5. 10.1162/jeea.2006.4.1.75 · DOI
  6. Shapiro MD, 1995, Am. Econ. Rev., 85, 274
  7. Shea J, 1995, Am. Econ. Rev., 85, 186

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Metadata

Authors
Jappelli, T., & Pistaferri, L.
Affiliations
  • Centre for Studies in Economics and Finance (IT)
  • Center for Economic and Policy Research (US)
ORCID
Venue
Annual Review of Economics
Publisher
Annual Reviews
Published
2010-09-04
Volume
2
Issue
1
Pages
479-506
ISSN
  • 1941-1383 (ISSN-L)
  • 1941-1391
DOI
10.1146/annurev.economics.050708.142933
OpenAlex
W3126088645
Cited by
704
References
86
Citations by year
2026: 49 · 2025: 51 · 2024: 57 · 2023: 45 · 2022: 46 · 2021: 69 · 2020: 59 · 2019: 46 · 2018: 48 · 2017: 44 · 2016: 39 · 2015: 39 · 2014: 49 · 2013: 29 · 2012: 20
FWCI
9.71
Type
journal article
Language
en
Open access
closed
Locations
  • Annual Review of Economics (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
  • Social Sciences › Economics, Econometrics and Finance › Finance › Financial Literacy, Pension, Retirement Analysis
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Economic Theory and Policy
Keywords
marginal propensity to consume, income shocks, consumption surveys, income risk

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CoChat. (2026). Citation check: The Consumption Response to Income Changes. https://app.cochat.ai/papers/10.1146/annurev.economics.050708.142933
The paper
Jappelli, T., & Pistaferri, L. (2010). The Consumption Response to Income Changes. Annual Review of Economics. https://doi.org/10.1146/annurev.economics.050708.142933