An overview of the most recent research on the saving and consumption patterns of households - a very active area of research in economics in which substanital progress has been made over the last decade.

`There has been a veritable explosion of econometric work on consumption in recent years ... Angus Deaton has been behind some of it and is on top of all of it. There is no better way to get up to date.' Alan S. Blinder, Princeton University `The book does an impressive job of integrating the insights available from many sources, drawing on theory as well as econometric evidence, and micro as well as macro models. Understanding Consumption is lucid, intuitive, and eminently readable.' Marjorie Flavin, University of Virginia `Angus Deaton has written a splendid book synthesizing and evaluating this work. It will prove invaluable for researchers and students alike.' N. Gregory Mankiw, Harvard University `Understanding Consumption is a masterful exposition ... not only adding to our understanding of the real world, but also revealing the excitement of the intellectual chase.' Stanley Fischer `This book derives from the Clarendon Lectures in Economics given by the author in May 1991. If the lectures were as compelling as the book, it is difficult to believe there was even standing room available by the final day! ... One of the many attractive features of this volume is the interplay between time-series analysis and individual data processes ... Deaton has not only provided an insightful analysis of what has been done but has also laid out a tantalizing research agenda.' Economica