Boom times lead to higher spending, busts to belt-tightening.
The article explores how economic ups and downs affect how well people can handle unexpected expenses. While traditional models suggest people spend less in good times, real-life data shows the opposite. By considering how financial difficulties can change depending on the economy, the researchers found that people's spending habits can vary greatly during different economic periods. This study sheds light on how individuals adjust their consumption in response to job losses, showing that these adjustments can be influenced by the overall economic climate.