Similar Search Results

The Buffer Stock Model and the Aggregate Propensity to Consume.

Sorensen, Bent E.; Luengo-Prado, Maria J. - Econometric Society - 2004

We simulate a buffer stock model of consumption at the individual level, aggregate, and estimate regressions on the … aggregated (simulated) data. Regressions of consumption on current (or lagged) disposable labor incomeâ€”using the simulated … dataâ€”are used to predict the marginal effect of changing persistence of income shocks or changing aggregate uncertainty …

Persistent link: https://www.econbiz.de/10005130183

Intertemporal Equivalence Scales: Measuring the Life-Cycle Costs of Children

Blacklow, Paul - Econometric Society - 2004

This paper provides a preliminary investigation into the lifetime cost of children upon a household's lifetime wealth. By comparing the lifetime cost function of a household with children compared to the lifetime cost function of a household without children, an intertemporal equivalence scale...

Persistent link: https://www.econbiz.de/10005063631

Individual Euler Equations Rather Than Household Euler Equations

Mazzocco, Maurizio - Econometric Society - 2004

essential to deal with an important issue: individual Euler equations depend on individual consumption which is not observable …. In this paper it is shown that individual Euler equations are identified when only data on household consumption …

Persistent link: https://www.econbiz.de/10005063734

Social Security Reform in an Economy with Population Aging

Nishiyama, Shinichi - Econometric Society - 2004

capita national wealth will increase compared to the balanced growth path, although the private saving rate will be declining …

Persistent link: https://www.econbiz.de/10005329021

Efficient Mechanisms for Bilateral Trading with Cooperative Investment

Zhao, Rui Ray - Econometric Society - 2004

This paper analyzes a bilateral trade problem where the seller makes hidden investment that influences the buyer's private valuation. Complete contracts can be written on observable trade decisions. It is shown that efficiency level in investment and trade is negatively related to the scope of...

Persistent link: https://www.econbiz.de/10005063600

An Experimental Study of Price Dispersion in a Search Model with Advertising

Datta, Shakun; Cason, Timothy N. - Econometric Society - 2004

This paper reports a laboratory experiment to study pricing and advertising behavior in a market with costly buyer search. Sellers simultaneously post prices and decide whether or not to incur an exogenous cost to advertise their price. Sellers are not capacity constrained, and each buyer...

Persistent link: https://www.econbiz.de/10005063675

How often should you open the door? Optimal monitoring to screen heterogeneous agents

Muehlheusser, Gerd; Ichino, Andrea - Econometric Society - 2004

This paper shows that monitoring too much a partner in the initial phase of a relationship may not be optimal if the goal is to determine his loyalty to the match and if the cost of ending the relationship increases over time. The intuition is simple: by monitoring too much we learn less on how...

Persistent link: https://www.econbiz.de/10005063690

Comparative Statics in a Herding Model of Investment

Pastine, Tuvana - Econometric Society - 2004

This paper is an adaptation of the Chamley-Gale endogenous-timing information-revelation model of investment (Econometrica 1994). It models a game with pure informational externality where agents can learn by observing others' actions. The social learning can result in herding and possibly in an...

Persistent link: https://www.econbiz.de/10005063698

Mergers Mechanisms

Viswanathan, S.; Brusco, S.; Lopomo, G. - Econometric Society - 2004

A firm can merge with one of n potential partners. The owner of each firm has private information about both his firm's stand-alone value and a component of the synergies that would be realized by the merger involving his firm. We characterize incentive-efficient mechanisms in two cases. First,...

Persistent link: https://www.econbiz.de/10005699650

Auditing policies and information

Sinclair-Desgagné, Bernard; Fagart, Marie-Cécile - Econometric Society - 2004

We first point out that, using any of the current criteria for comparing information systems in principal-agent models with moral hazard (such as Kim (1994)'s criterion), it is often impossible to contrast the value of information obtained from different policies of contingent audits that bear...

Persistent link: https://www.econbiz.de/10005699658