The Nonlinear Consumption Response to Income Risk: The Role of Tail Changes and Durables

Feb 10, 2026·
Rocío Madera
Rocío Madera
· 1 min read
Abstract
Studies how changes in the tails of income risk shape household consumption responses, including the role of durable goods.
Type
Publication
Review of Economic Dynamics, revise & resubmit
Status
Open access
publications

Revise and resubmit, Review of Economic Dynamics.

Tail Risk Durables Spending Data Consumption
Rocío Madera
Authors
Rocío Madera
Assistant Professor of Economics
I am an Assistant Professor in the Department of Economics at Southern Methodist University and a CESifo Research Network Research Affiliate. My research combines rich micro-data with quantitative models to study how labor-market risk, fiscal transfers, and local economic conditions shape heterogeneous household decisions and welfare. Download my CV here to learn more about me and my work.