Nber Working Paper Series the Implications of Richer Earnings Dynamics for Consumption and Wealth

Previously circulated as "The Implications of Richer Earnings Dynamics for Consumption, Wealth, and Welfare." De Nardi gratefully acknowledges support from the ERC, grant 614328 “Savings and Risks” and from the ESRC through the Centre for Macroeconomics. Fella is grateful to UCL for their generous hospitality while he was working on this paper. We thank Serdar Ozkan for assistance in generating the synthetic W2 data set and Marco Bassetto, Richard Blundell, Tony Braun, Jeremy Lise, Fabrizio Perri, Fabien Postel-Vinay, Ananh Sehsadri and Gustavo Ventura for helpful comments and suggestions. We are grateful to Moritz Kuhn for providing us with additional statistics from the Survey on Consumer Finances data set. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research, any agency of the Federal Government, or the Federal Reserve Bank of Chicago.