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Marquis, Milton H.; Krainer, John - Econometric Society - 2004

Mortgages are one-sided contracts under which the borrower may terminate the contract at any time, while the lender must commit to honoring the terms of the contract throughout its life. There are two aspects to this feature of the contract that are modeled in this paper. The first is that the...

Persistent link: https://www.econbiz.de/10005328972

The Strength and Nature of Bequest Motives in the United States

Lee, Yoon G.; Horioka, Charles Yuji - Econometric Society - 2004

In this paper, we analyze the strength and nature of bequest motives in the United States using data from the 2000 Health and Retirement Study (HRS). The results of our analysis suggest that bequest motives are very strong in the United States and that they are altruistically motivated. This...

Persistent link: https://www.econbiz.de/10005342297

Consumer Time Inconsistency: Evidence from a market experiment in the credit card market

Shui, Haiyan; Ausubel, Lawrence M. - Econometric Society - 2004

This paper analyzes a unique dataset, which contains results of a large-scale experiment in the credit card market. Two strange phenomena that suggest time inconsistency in consumer behavior are observed: First, consumers prefer an introductory offer which has a lower interest rate with a...

Persistent link: https://www.econbiz.de/10005063723

Precautionary Saving, Borrowing Constraints, and Fiscal Policy

Park, Cheolbeom; Bishop, Thomas - Econometric Society - 2004

Recent empirical studies suggest that the average marginal propensity to consume (MPC) has declined. This paper explains the declining trend of the MPC with a standard representative consumer model where borrowing constraints become more relaxed as suggested by data. With an increase in...

Persistent link: https://www.econbiz.de/10005063766

Credit Crunches and Household Welfare: The Case of Korean Financial Crisis

Sawada, Yasuyuki; Kang, Sung Jin - Econometric Society - 2004

The financial crisis in 1997 caused serious deterioration of the Korean economy. We examined the credit crunch in Korea and how it affected household welfare. With household panel data from 1996-1998, we estimated a switching regression model of a consumption Euler equation, which is augmented...

Persistent link: https://www.econbiz.de/10005702753

Inequality-Driven Growth: Unveiling Aggregation Effects in Growth Equations

Albuquerque, Pedro H. - Econometric Society - 2004

This paper presents a simple Cass-Koopmans-Ramsey AK growth model with heterogeneity that explains how policies that … increase income inequality may temporarily boost a countryâ€™s income growth rate. Briefly put, a change in policy that reduces … redistributive transfers will free up resources to the households with the highest productivities, resulting in an aggregate growth …

Persistent link: https://www.econbiz.de/10005328881

Assesment of the relationship between Inequality and Economic Growth: A panel Data Approach

Diaz, Araceli Ortega - Econometric Society - 2004

The relationship between income distribution and economic growth has been found to depend on several factors such as … trade and openness. The current work assesses how income inequality influences growth stimating a reduced form growth … household income from national surveys, it is found that inequality and growth are positively related. When analysing different …

Persistent link: https://www.econbiz.de/10005328905

The States vs. the states: On the Welfare Cost of Business Cycles in the U.S.

Robe, Michel A.; Pallage, Stephane - Econometric Society - 2004

welfare gain from eliminating business cycles can exceed the gain from increasing the long-term growth rate by 1% forever. Our …

Persistent link: https://www.econbiz.de/10005328988

A Welfare Analysis of Growth Models with Endogenous Innovation

Schworm, William - Econometric Society - 2004

In this paper, I study the welfare properties of growth models with endogenous innovation, knowledge externalities, and … monopoly pricing of new goods. Since useful policy prescriptions cannot be inferred from a balanced growth analysis, welfare is …

Persistent link: https://www.econbiz.de/10005342146

What do information frictions do?

Chakraborty, Shankha; Bhattacharya, Joydeep - Econometric Society - 2004

Researchers have incorporated labor or credit market frictions in isolation within simple neoclassical models to open up a role for institutions, inject realism into their models and examine the impact of these distortions on output and employment. We present an overlapping generations model...

Persistent link: https://www.econbiz.de/10005342267