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Housing, Household Portfolio, and Intertemporal Elasticity of Substitution: Evidence from the Consumer Expenditure Survey
Hasanov, Fuad - EconWPA - 2005
This paper investigates whether the inclusion of housing in a household portfolio is important to the household …, and inflation. In addition to financial assets such as stocks and bonds, we incorporate a real asset, residential housing … Expenditure Survey. Since changes in housing return can affect consumption of households over time, we investigate whether the …
Persistent link: https://www.econbiz.de/10005126248
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The Rate of Interest or the Rate of Return: Estimating Intertemporal Elasticity of Substitution
Dacy, Douglas; Hasanov, Fuad - EconWPA - 2005
measure we use includes financial assets such as stocks and bonds and a real asset, residential housing. In particular, we …
Persistent link: https://www.econbiz.de/10005126444
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Explicit Transitional Dynamics in Growth Models
Xie, Danyang - EconWPA - 2002
Transitional dynamics in growth models have been subject to much attention recently. With a few exceptions, existing studies rely on computational techniques. This paper uses a set of examples to illustrate that qualitative insights on the transitional dynamics can be gained at the expense of...
Persistent link: https://www.econbiz.de/10005125673
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Volatility, Heterogeneous Agents and Chaos
Gomes, Orlando - EconWPA - 2004
Agent heterogeneity has been used in recent economic literature to justify nonlinear dynamics for the time paths of aggregate economic variables. In this paper, the mechanism through which heterogeneous agents leads to chaotic motion is explained. Adding to a system with initial behavior...
Persistent link: https://www.econbiz.de/10005125624
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Discount factors ex post and ex ante, and discounted utility anomalies
Boyarchenko, Svetlana; Levendorskii, Sergei - EconWPA - 2005
The real options approach is used to explain discounted utility anomalies as artifacts of the optimizing behavior of an individual with standard preferences, who perceives the utility from consumption in the future as uncertain. For this ndividual, waiting is valuable because uncertainty is...
Persistent link: https://www.econbiz.de/10005135039
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A theory of endogenous time preference, and discounted utility anomalies
Boyarchenko, Svetlana; Levendorskii, Sergei - EconWPA - 2005
We explain essentially all known discounted utility anomalies as artefacts of the optimizing behavior of an individual with a time- separable utility function, who perceives a good as a source of a stochastic consumption stream, and believes that she can wait for an optimal moment to buy or sell...
Persistent link: https://www.econbiz.de/10005135046
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A Framework for Studying Economic Interactions (with applications to corruption and business cycles)
Verbrugge, Randal J. - EconWPA - 1998
Most economic models implicitly or explicitly assume that interactions between economic agents are 'global' - in other words, each agent interacts in a uniform manner with every other agent. However, localized interactions between microeconomic agents are a pervasive feature of reality. What are...
Persistent link: https://www.econbiz.de/10005407546
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The Rise in Returns to Education and the Decline in Household Savings
Chanda, Areendam - EconWPA - 2005
This paper explores the consequences of rising returns to human capital investment on the personal savings rate. Over the past two decades, the return to college education has increased relative to high school education leading economists to argue the presence of 'skill biased technological...
Persistent link: https://www.econbiz.de/10005076792
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Efficiency-Enhancing Signalling in the Samaritan's Dilemma
Lagerlof, Johan - EconWPA - 2002
Suppose an altruistic person, A, is willing to transfer resources to a second person, B, if B comes upon hard times. If B anticipates that A will act in this manner, B will save too little from both agents' point of view. This is the Samaritan's dilemma. The logic of the dilemma has been...
Persistent link: https://www.econbiz.de/10005077070
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Inequality over the Business Cycle: Estimating Income Risk using Micro-Data on Consumption
Primiceri, Giorgio; Rens, Thijs van - EconWPA - 2002
We use CEX repeated cross-section data on consumption and income, to evaluate the nature of increased income inequality in the 1980s and 90s. We decompose unexpected changes in family income into transitory and permanent, and idiosyncratic and aggregate components, and estimate the contribution...
Persistent link: https://www.econbiz.de/10005126150