This is a short survey on consumption theory. Consumption is important to both fluctuation and growth. In addition, consumption introduces some important issues involving financial markets and portfolio decisions. We will describe consumption decisions in a dynamic context. Uncertainty about income and interest rates are introduce in the second part of the paper. The interaction between consumption decisions and portfolio choice is investigated in the third part of the paper.
Available at: http://works.bepress.com/giuseppe_travaglini/28/