Before revision:  This paper provides identification analysis, simulation evidence and an application using Spanish data where the borrowing constrained are identified by combining information from different surveys. Results suggest that incomplete markets can potentially rationalize the gap between micro and macro elasticities for aggregate consumption and labor supply .
After revision:  This paper provides identification analysis, simulation evidence and an application using Spanish data and shows that accounting for the extensive margin can contribute in bridging the gap between micro and macro elasticities for aggregate consumption and labor supply .