Research seminar at the Laboratory for Banking Studies (LaBS FES HSE)

On Tuesday, February 11th, 2025, at 13:00 (Moscow time) at the LaBS research seminar Paulo Medeiros (University of Milano-Bicocca) will present his paper "Consumption Behavior, Savings Targets and Learning Dynamics". 

Abstract:

This paper introduces a novel model integrating a savings target mechanism with learning dynamics to overcome limitations in classical consumption-savings theories, such as the permanent income and life cycle hypotheses. By incorporating behavioral responses to economic changes, the model more accurately captures observed consumption patterns, especially in response to transitory income shocks and variations in the marginal propensity to consume (MPC). Governed by a quadratic hyperbolic decay fitness function, the learning mechanismensures adaptability and long-term predictive reliability. Numerical simulations demonstrate the alignment of the model with empirical data, showcasing significant MPC responses to income shocks while maintaining key results such as consumption smoothing and long-term convergence to a steady state.

Full paper is available here.

Zoom link: https://us06web.zoom.us/j/81752096986?pwd=56BCaAF0ahx9WzrsTH9xGtkPpDNVxB.1#success