B2223 - ECONOMICS OF CONSUMPTION AND SAVING

Learning outcomes

The course analyzes the consumption and saving choices of households. At the end of the course, the student is expected to: understand the stylized empirical facts and the main theoretical problems related to saving choices; analyze the patterns of consumption over the life cycle and the effects of income shocks; recognize the role played by institutional and cultural influences on saving decisions.

Course contents

The course analyzes individual consumption and saving choices in the case of complete and incomplete capital markets, the effects of expected or unexpected changes in income and other personal characteristics on consumption choices. An short introduction to households' portfolio management.

Detailed program.

Human, real and financial wealth (GS)
Intertemporal consumption and saving choices (JP 1-2; GS)
Consumption, saving and accumulation of wealth with complete and incomplete markets. Liquidity constraints, precautionary behavior, accumulation of buffer stocks. Behavioral elements in consumption (JP 3-7)
Consumption and income shocks (JP 8-10)
Bequests; survival risk (JP 11-12); Consumption and income distribution (JP1)

Some stylized facts in households' portfolio management (GS).

Readings/Bibliography

JP: Jappelli T. e Pistaferri L., 2017, The Economics of Consumption: Theory and Evidence, Oxford UP

JP1: Jappelli T. e Pistaferri L., 2014, Fiscal Policy and MPC Heterogeneity, American Economic Journal: Macroeconomics 2014, 6(4): 107–136 http://dx.doi.org/10.1257/mac.6.4.107

GS: Guiso L. e Sodini P., Household finance: an emerging field, Handbook of the Economics of Finance, vol. 2 part B., Elsevier North Holland, Amsterdam

Teaching methods

Frontal lessons

Assessment methods

Written and oral exam on the published program.

The exam program is the same for attending and non-attending students.

There is the possibility of agreeing with the teacher on the presentation of specific topics of the program.

The candidate evaluation follows the following grid.
• Insufficient preparation and analytical capacity: failed.
• Sufficient preparation and analytical skills, expressed in formally correct language: 18-22.
• Technically adequate preparation, sufficient analytical skills, not particularly articulated, expressed in correct language: 23-26.
• In-depth knowledge of the topics addressed in the course, good analytical and critical skills, mastery of specific terminology: 27-29.
• Very in-depth knowledge of the topics addressed in the course, critical analysis and connection skills, mastery of specific terminology: 30-30L.

The student has the right to refuse the grade once, via written communication, in line with the rules of the University of Bologna.

Office hours

See the website of Antonello Eugenio Scorcu