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PhD Candidate
University of Rochester


Job Market Paper

"Consumption's Response to Permanent Income: The Role of Consumption Commitments" [PDF]

The textbook permanent-income hypothesis predicts that the level of consumption is proportional to the level of permanent income, while, in the data, the elasticity of consumption to permanent income appears to be far below one. In this paper, I provide evidence for a novel theory for this consumption under-response to permanent income based on consumption commitments -- hard-to-adjust consumption choices that resemble long-term commitments. Empirically, I document four main new facts that support the theory: (a) the consumption elasticity to permanent income is larger for younger households, (b) it depends on past income trajectories, and (c) it becomes larger after households adjust their commitments; furthermore, I show that (d) those households that have "under-responded" to their income growth skew spending away from hard-to-adjust goods (notably shelter). These facts are evidence in favor of household "lock-in" to past consumption choices. Quantitatively, I show that consumption commitments are necessary for life-cycle models to account for all the documented facts.

Tapan Mitra Prize for the Best 5th-Year Paper in Empirical Economics, University of Rochester, 2023


"The Quality-Adjusted Cyclical Price of Labor" (together with Mark Bils, Marianna Kudlyak), Journal of Labor Economics, October 2023. [PDF] [Abstract]

Work in Progress

"Labor Demand and Firms' Discount Rates" (Approved by the Census Bureau, awaiting Special Sworn Status) [Abstract]

"Growing up with an Unemployed Mother" (together with Nataliya Gimpelson) [Abstract]

"Human Capital, Career Choice, and the Hours Profile Over the Life-Cycle" [Abstract]

Pre-PhD Research

"Inflation Targeting under Fiscal Fragility" (together with Aloísio Araujo, Victor Costa, Rafael Santos, Serge de Valk), August 2023. [PDF] Under revision

"Current Constraints on Growth" (together with Armando Castelar Pinheiro), In: Antonio Spilimbergo and Krishna Srinivasan, editors, Brazil: Boom, Bust, and the Road to Recovery, IMF, March 2019. [PDF] [Book]