Cubbedu, Luis; Rios-Rull, Jose-Victor - Centro de Análisis y Estudios Ríos Pérez (CAERP) - 2002
In this paper we show the quantitative importance of the process that determines changes in family composition to determine the main macroeconomic magnitudes. We do so by modelling family type as a stochastic process that affects households in a way similar to shocks to earnings. Agents respond...