Love, David A.; Palumbo, Michael G.; Smith, Paul A. - 2008
annualized wealth will track consumption in certain specifications of a life-cycle model, the
two will generally differ. It … a simple life-cycle model and that it can also be derived
from annuity-pricing principles.
For each household, we define … consumption and annualized wealth in our life-cycle models.
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consider a range of fairly standard model specifications,26 but …