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Dynamic Optimization Meets Budgeting : Unraveling Financial Complexities

Fenig, Guidon; Petersen, Luba - National Bureau of Economic Research - 2024

This paper explores sources of complexity in dynamic optimization, examining how individuals navigate variation in incomes, prices, and returns in ten-period consumption-saving decisions. Our findings reveal that dynamic optimization poses significant challenges, resulting in suboptimal choices...

Persistent link: https://www.econbiz.de/10015056146

Current Account Dynamics and the Saving-Investment Nexus In a Changing and Uncertain World

Chinn, Menzie David; Itō, Hiro - National Bureau of Economic Research - 2024

We re-examine the determinants of current account balances (CAB) and the saving-investment nexus with focus on emerging market and developing economies (EMDEs). We are in a new age in terms of facing not just economic challenges but also other non-economic challenges such as global climate...

Persistent link: https://www.econbiz.de/10015145057

The Global Life-Cycle Optimizer – Analyzing Fiscal Policy's Potential to Dramatically Distort Labor Supply and Saving

Brumm, Johannes; Kotlikoff, Laurence J.; Krause, Christopher - National Bureau of Economic Research - 2024

Fiscal policy in the U.S. and other countries renders intertemporal budgets non-differentiable, nonconvex, and discontinuous. Consequently, assessing work and saving responses to policy requires global optimization. This paper develops the Global Life-Cycle Optimizer (GLO), a stochastic...

Persistent link: https://www.econbiz.de/10014528375

Using Divide-and-Conquer to Improve Tax Collection : Evidence from the Field

Del Carpio, Lucía; Kapon, Samuel; Chassang, Sylvain - National Bureau of Economic Research - 2022

theory: tax-payers' response to incentives is slow, which changes the optimal management of collection promises. Finally, we …

Persistent link: https://www.econbiz.de/10013334436

Using Lotteries to Attract Deposits

Gertler, Paul J.; Higgins, Sean; Scott, Aisling; Seira, … - National Bureau of Economic Research - 2023

had a persistent 2-3 year impact on the flow of deposits and stock of savings, and increased the present value of branch …

Persistent link: https://www.econbiz.de/10014337763

Automatic Enrollment with a 12% Default Contribution Rate

Beshears, John; Guo, Ruofei; Laibson, David I.; … - National Bureau of Economic Research - 2023

We study a retirement savings plan with a default contribution rate of 12% of income, which is much higher than …

Persistent link: https://www.econbiz.de/10014337834

Smaller than We Thought? The Effect of Automatic Savings Policies

Choi, James J.; Laibson, David I.; Cammarota, Jordan; … - National Bureau of Economic Research - 2024

Medium- and long-run dynamics undermine the effect of automatic enrollment and default savings-rate auto-escalation on … retirement savings. Our analysis of nine 401(k) plans incorporates the facts that employees frequently leave firms (often before …

Persistent link: https://www.econbiz.de/10015056154

Why Do Europeans Save? Micro-Evidence from the Household Finance and Consumption Survey

Horioka, Charles; Ventura, Luigi - National Bureau of Economic Research - 2024

We analyze the saving motives of European households using micro-data from the Household Finance and Consumption Survey (HFCS), which is conducted by the European Central Bank. We find that the rank ordering of saving motives differs greatly depending on what criterion is used to rank them. For...

Persistent link: https://www.econbiz.de/10015056164

Automating Short-Term Payroll Savings : Evidence from Two Large U.K. Experiments

Holmes Berk, Sarah; Choi, James J.; Garg, Jay; … - National Bureau of Economic Research - 2024

Automatic enrollment is often used to increase retirement savings. What are the effects of using it (or, alternatively …, requiring an active enrollment choice) to increase short-term savings? We evaluate two experiments in the U.K. at employers that … enable workers to set up payroll contributions to fund short-term savings accounts. In the first experiment (N = 7 …

Persistent link: https://www.econbiz.de/10014576610

Sectoral Debt and Global Dollar Cycles in Developing Economies

Han, Bada; Ahmed, Rashad; Aizenman, Joshua; Jinjarak, Yothin - National Bureau of Economic Research - 2024

We explore the role of sectoral debt dynamics in shaping business cycles in a sample of 52 Emerging Market Economies (EMEs) and Frontier Market Economies (FMEs) from 2005 to 2021. Higher household debt levels and growth are associated with significantly slower GDP growth in more developed EMEs...

Persistent link: https://www.econbiz.de/10014486174