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Standard real business cycle models must rely on total factor productivity (TFP) shocks to explain the observed comovement of consumption, investment, and hours worked. This paper shows that a neoclassical model consistent with observed heterogeneity in labor supply and consumption can generate comovement in the absence of TFP shocks. Intertemporal substitution of goods and leisure induces como...

A greater focus on the role of health systems in health, development, and economic growth has led health policy research and analysis, domestic and global, to scrutinize health financing, insurance, and financial protection. Two World Health Reports (2000 and 2010) [1,2] have called for evaluating health system performance in terms of health financing, and the World Health Organization’s (WHO) ...

This paper studies stylized empirical facts regarding the e¤ects of unexpected changes in aggregate macroeconomic policies on consumers that are allowed to di¤er depending on their individual characteristics. In particular, we focus on …scal shocks due to their important e¤ects on consumers’welfare. We use data from the Consumption Expenditure Survey (CEX) to estimate impulse responses as well ...