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Private Transfers, Borrowing Constraints and the Timing of Homeownership

Guiso, Luigi; Jappelli, Tullio - C.E.P.R. Discussion Papers - 1998

The 1991 Italian Survey of Household Income and Wealth contains detailed information on how respondents acquired their main residence and any other real estate. This information is used to estimate the impact of inter vivos transfers on the saving period required to purchase a house and on the...

Persistent link: https://www.econbiz.de/10005504649

Risk Aversion and Optimal Portfolio Policies in Partial and General Equilibrium Economies

Kogan, Leonid; Uppal, Raman - C.E.P.R. Discussion Papers - 2002

In this article, we show how to analyse analytically the equilibrium policies and prices in an economy with a stochastic investment opportunity set and incomplete financial markets, when agents have power utility over both intermediate consumption and terminal wealth, and face portfolio...

Persistent link: https://www.econbiz.de/10005504284

Education and Borrowing Constraints: Tests Vs. Prices

Fernández, Raquel - C.E.P.R. Discussion Papers - 1998

This paper examines the properties of exams and markets as alternative allocation devices under borrowing constraints. Exams dominate markets in terms of matching efficiency. Whether aggregate consumption is greater under exams than under markets depends on the power of the exam technology; for...

Persistent link: https://www.econbiz.de/10005497883

Durable Goods, Borrowing Constraints and Consumption Insurance

Cerletti, Enzo; Pijoan-Mas, Josep - C.E.P.R. Discussion Papers - 2012

In this paper we study the transmission of income shocks into nondurable consumption in the presence of durable goods. We use a standard a life-cycle model with two goods to characterize the interaction of durability of goods, durability of shocks, and borrowing constraints as determinants of...

Persistent link: https://www.econbiz.de/10011084596

To Each According To...? Markets, Tournaments, and the Matching Problem with Borrowing Constraints

Fernández, Raquel; Galí, Jordi - C.E.P.R. Discussion Papers - 1997

We compare the performance of markets and tournaments as allocative mechanisms in an economy with borrowing constraints. The model consists of a continuum of individuals who differ in their initial wealth and ability level (e.g. students) and that are to be assigned to a continuum of investment...

Persistent link: https://www.econbiz.de/10005656414

Consumption Smoothing and Income Redistribution

Bertola, Giuseppe; Koeniger, Winfried - C.E.P.R. Discussion Papers - 2007

We show theoretically that income redistribution benefits borrowing-constrained individuals more than is implied by standard relative-income and uninsurable-risk considerations. Empirically, we find in international opinion-survey data that younger and lower-income individuals express stronger...

Persistent link: https://www.econbiz.de/10005666473

Equilibrium and Welfare in Markets with Financially Constrained Arbitrageurs

Gromb, Denis; Vayanos, Dimitri - C.E.P.R. Discussion Papers - 2001

We propose a multi-period model in which competitive arbitrageurs exploit discrepancies between the prices of two identical risky assets, traded in segmented markets. Arbitrageurs need to collateralize separately their positions in each asset, and this implies a financial constraint limiting...

Persistent link: https://www.econbiz.de/10005666703

Wealth Distribution and Self-Employment in a Developing Economy

Mesnard, Alice; Ravallion, Martin - C.E.P.R. Discussion Papers - 2001

The extent of entrepreneurial activity in an economy with poorly developed capital markets depends on the distribution of wealth, though in potentially complex ways. A non-parametric model of the wealth effect on self-employment is estimated using micro data on the occupational choices of return...

Persistent link: https://www.econbiz.de/10005124477

Intergenerational Transfer of Human Capital and Optimal Education Policy

Cremer, Helmuth; Pestieau, Pierre - C.E.P.R. Discussion Papers - 2004

individuals (high and low earning ability). Parents’ investment in education is motivated by warm-glow altruism and determines the …-glow altruism parents’ utility does not properly account for the impact of education on future generations. The second term captures …

Persistent link: https://www.econbiz.de/10005498169

Unequal Bequests

Francesconi, Marco; Pollak, Robert A.; Tabasso, Domenico - C.E.P.R. Discussion Papers - 2015

-of-life transfers. First, we show that unequal bequests are much more common than generally recognized, with one-third of parents with … parents and children reduces or eliminates unequal bequests. Second, although the literature focuses on the bequest intentions … of parents who have made wills, we find that many elderly Americans have not made wills. Although the probability of …

Persistent link: https://www.econbiz.de/10011165653