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This paper characterizes the solution to a consumption/savings decision problem in which one of the consumption goods involves transaction costs. It then analyzes how such adjustment costs affect consumers' risk attitudes. Previous studies have suggested that transaction costs, by resulting in...
Persistent link: https://www.econbiz.de/10010729239
In recent years, India has enjoyed one of the highest growth rates worldwide, weathering the global financial crisis … investment. Stepping up structural reforms will also be necessary if double-digit growth rates are to be achievable over the … strengthen social welfare systems and access to health and education to ensure widespread benefits from continued high growth …
Persistent link: https://www.econbiz.de/10009191040
China's fast growth is perceived as a major determinant of its savings glut that contributes to global imbalances, but … find that China's growth is positively affected by saving but has a limited effect on saving, that inequality mainly has a … negative impact on growth but has a positive impact on saving, and that inequality is a stronger factor than growth in …
Persistent link: https://www.econbiz.de/10010738018
Persistent link: https://www.econbiz.de/10011576722
reduction, and other policy objectives such as employment and productivity growth as well as macroeconomic resilience. Informed …
Persistent link: https://www.econbiz.de/10012202943
In this paper we study the neoclassical growth model with idiosyncratic income risk and aggregate risk in which risk …
Persistent link: https://www.econbiz.de/10014437034
Households spent only a small fraction of their 2020 Economic Impact Payment (EIPs) within a couple of months of arrival, consistent with i) pandemic constraints on spending, ii) other pandemic programs and social insurance, and iii) the broader disbursement of the EIPs compared to the economic...
Persistent link: https://www.econbiz.de/10013435158
When solving discrete-time consumption models with present-biased time preferences, backwards induction generates equilibria that are non-robust in the sense that policy functions are often sensitive to parameter choices, including the modeler's choice of the time-step. The current paper...
Persistent link: https://www.econbiz.de/10013537716
In this paper, we use micro data on a large number of European countries from the Survey of Health, Ageing and Retirement in Europe (SHARE) to examine the wealth accumulation (saving) behavior of the retired elderly in Europe. To summarize our main findings, we find that less than half of the...
Persistent link: https://www.econbiz.de/10013388826
This paper studies how and why households adjust their spending, saving, and borrowing in response to transitory income shocks. We leverage new large-scale survey data to first quantitatively assess households' intertemporal marginal propensities to consume (MPCs) and deleverage (MPDs) (the...
Persistent link: https://www.econbiz.de/10014512045