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100			_aMalmendier, Ulrike and Shen, Leslie Sheng _950308
245			_aScarred consumption
260			_aAmerican Economic Journal: Macroeconomics
300			_a16(1), Jan, 2024: p.322-355
520			_aWe show that prior lifetime experiences can "scar" consumers. Consumers who have lived through times of unemployment exhibit persistent pessimism about their future financial situation and spend significantly less years later, controlling for income, employment, and other life-cycle consumption factors. Due to their experience-induced frugality, scarred consumers build up more wealth. We use a stochastic life-cycle model to show that financial constraints and traditional models of income and unemployment scarring fail to generate the negative relationship between past experiences and consumption. Instead, the relationship is consistent with experience-based learning.- Reproduced https://www.aeaweb.org/articles?id=10.1257/mac.20210387
773			_aAmerican Economic Journal: Macroeconomics
906			_aCONSUMERS
942			_cAR