?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F47813%2F&rft.title=Heterogeneity+of+Consumption+Responses+to+Income+Shocks+in+the+Presence+of+Nonlinear+Persistence&rft.creator=Arellano%2C+Manuel&rft.creator=Blundell%2C+Richard&rft.creator=Bonhomme%2C+St%C3%A9phane&rft.creator=Light%2C+Jack&rft.subject=B-+ECONOMIE+ET+FINANCE&rft.description=In+this+paper+we+use+the+enhanced+consumption+data+in+the+Panel+Survey+of+Income+Dynamics+(PSID)+from+2005-2017+to+explore+the+transmission+of+income+shocks+to+consumption.+We+build+on+the+nonlinear+quantile+framework+introduced+in+Arellano%2C+Blundell+and+Bonhomme+(2017).+Our+focus+is+on+the+estimation+of+consumption+responses+to+persistent+nonlinear+income+shocks+in+the+presence+of+unobserved+heterogeneity.+To+reliably+estimate+heterogeneous+responses+in+our+un-balanced+panel%2C+we+develop+Sequential+Monte+Carlo+computational+methods.+We+find+substantial+heterogeneity+in+consumption+responses%2C+and+uncover+latent+types+of+households+with+different+life-cycle+consumption+behavior.+Ordering+types+according+to+their+average+log-consumption%2C+we+find+that+low-consumption+types+respond+more+strongly+to+income+shocks+at+the+beginning+of+the+life+cycle+and+when+their+assets+are+low%2C+as+standard+life-cycle+theory+would+predict.+In+contrast%2C+high-consumption+types+respond+less+on+average%2C+and+in+a+way+that+changes+little+with+age+or+assets.+We+examine+various+mechanisms+that+might+explain+this+heterogeneity.&rft.publisher=TSE+Working+Paper&rft.date=2023-05&rft.type=Monograph&rft.type=NonPeerReviewed&rft.format=text&rft.language=en&rft.identifier=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F47813%2F1%2Fwp_tse_1435.pdf&rft.identifier=++Arellano%2C+Manuel+%3Chttps%3A%2F%2Fwww.idref.fr%2F076342727%3E%2C+Blundell%2C+Richard+%3Chttps%3A%2F%2Fwww.idref.fr%2F034527966%3E%2C+Bonhomme%2C+St%C3%A9phane+%3Chttps%3A%2F%2Fwww.idref.fr%2F076153053%3E+and+Light%2C+Jack++(2023)+Heterogeneity+of+Consumption+Responses+to+Income+Shocks+in+the+Presence+of+Nonlinear+Persistence.++TSE+Working+Paper%2C+n.+23-1435%2C+Toulouse+++++&rft.relation=http%3A%2F%2Ftse-fr.eu%2Fpub%2F128075&rft.language=en