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Anti-evasion auditing policy in the presence of common income shocks

Sanchez-Villalba, Miguel - London School of Economics (LSE) - 2006

When fairly homogeneous taxpayers are affected by common income shocks, a tax agency’s optimal auditing strategy consists of auditing a low-income declarer with a probability that (weakly) increases with the other taxpayers’ declarations. Such policy generates a coordination game among...

Persistent link: https://www.econbiz.de/10010928739

Aggregate implications of defined benefit and defined contribution systems

Gomes, Francisco; Michaelides, Alexander - London School of Economics (LSE) - 2003

We use a general equilibrium life-cycle model with incomplete markets and heterogeneous agents to evaluate the macroeconomic and welfare implications of Defined Benefit (DB) versus Defined Contribution (DC) systems, and to investigate the effects of incremental reform within a particular system....

Persistent link: https://www.econbiz.de/10010746402

Household finance and the welfare state: a case study of the United States, 1980-2010

Gerba, Eddie; Schelkle, Waltraud - London School of Economics (LSE) - 2014

The sharp rise in household finance, both in debt and in assets, is one of the striking empirical facts about the US economy of the last two decades. But it is still not clear what caused it. Economists, both mainstream and heterodox, seek an explanation in financial market innovation and...

Persistent link: https://www.econbiz.de/10011126600

James Tobin : an appreciation of his contribution to economics

Buiter, Willem H. - London School of Economics (LSE) - 2003

Jim Tobin, who died on March 11, 2002 at the age of 84, was one of giants of economics of the second half of the twentieth century and the greatest macroeconomist of his generation. Tobin’s influence on macroeconomic theory is so pervasive - so much part of our professional ‘acquis’ - that...

Persistent link: https://www.econbiz.de/10011071326

Unmet aspirations as an explanation for the age u-shape in human wellbeing

Schwandt, Hannes - London School of Economics (LSE) - 2013

theories have assumed that the U-shape is caused by unmet expectations that are felt painfully in midlife but beneficially … abandoned and experienced with less regret during old age. In a unique panel of 132,609 life satisfaction expectations matched … support theories that unmet expectations drive the age U-shape in wellbeing. …

Persistent link: https://www.econbiz.de/10010746117

Peering into the mist: social learning over an opaque observation network

Barrdear, John - London School of Economics (LSE) - 2014

the link distribution. I derive a specific law of motion for the hierarchy of aggregate expectations, which includes a … increased persistence, so that average expectations overshoot the truth following an aggregate shock. When the network is …

Persistent link: https://www.econbiz.de/10011126293

Measuring income risk

Burgess, Simon; Gardiner, Karen; Jenkins, Stephen P.; … - London School of Economics (LSE) - 2000

We provide a critique of the methods that have been used to derive measures of income risk and draw attention to the importance of demographic factors as a source of income risk. We also propose new measures of the contribution to total income risk of demographic and labour market factors....

Persistent link: https://www.econbiz.de/10011126475

The more we know, the less we agree: public announcements and higher-order expectations

Kondor, Peter - London School of Economics (LSE) - 2004

The stylized fact that public announcements in financial markets are followed by intense trading, high trading volume and volatile prices, is widely perceived as the sign of increasing disagreement due to the announcement. However, it is common to argue that this would be inconsistent with...

Persistent link: https://www.econbiz.de/10011071459

Endogenous state prices, liquidity, default, and the yield curve

Espinoza, Raphael A.; Goodhart, Charles; Tsomocos, … - London School of Economics (LSE) - 2007

liquidity. The upshot of our argument is that agents’ expectations computed using risk-neutral probabilities give more weight in …

Persistent link: https://www.econbiz.de/10010745061

The importance of the wording of the ECB

Rosa, Carlo; Verga, Giovanni - London School of Economics (LSE) - 2005

one implied by market-based measures of monetary policy expectations. Moreover, the ECB’s wording provides complementary …

Persistent link: https://www.econbiz.de/10010745720