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Real effects of regional house prices: dynamic panel estimation with heterogeneity

Muñoz, Sònia - London School of Economics (LSE) - 2004

root and are cointegrated with consumption. Even though an aging population has some effect on consumption in some states …

Persistent link: https://www.econbiz.de/10011071164

The impact of wealth on consumption and retirement behaviour in the UK

Blake, David - London School of Economics (LSE) - 2002

Housing and pension wealth are shown to be important determinants of personal sector consumption and retirement … behaviour in the UK. Housing and state pension wealth have a positive effect on consumption, while private pension wealth … shown to be important. The consumption equation forecasts the late 1980s boom and the early 1990s slump in the UK better …

Persistent link: https://www.econbiz.de/10011071212

Portfolio choice with internal habit formation : a life-cycle model with uninsurable labor income risk

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

these preferences in a life-cycle model of consumption and portfolio choice with liquidity constraints, undiversifiable … consumption smoothing motive is stronger. As a result, households start participating in the stock market very early in life, and …

Persistent link: https://www.econbiz.de/10010928771

Consumption and savings with unemployment risk: implications for optimal employment contracts

Pissarides, Christopher - London School of Economics (LSE) - 2002

risks. Without income insurance, consumption rises during employment and falls during unemployment. Optimal employment … contracts offer severance compensation to smooth consumption during employment without causing moral hazard. A preannounced … fully smooth consumption. During the delay consumption falls and the worker searches for another job. No delays in …

Persistent link: https://www.econbiz.de/10010928803

Policy uncertainty and precautionary savings

Giavazzi, Francesco; McMahon, Michael - London School of Economics (LSE) - 2008

In 1997 Chancellor Kohl proposed a major pension reform: he pushed the law through Parliament explaining that the German PAYG system had become unsustainable. One limitation of the new law - one that is crucial for our identification strategy - is that it left the generous pension entitlements...

Persistent link: https://www.econbiz.de/10010928811

Asset pricing with limited risk sharing and heterogeneous agents

Gomes, Francisco; Michaelides, Alexander - London School of Economics (LSE) - 2005

We solve a model with incomplete markets and heterogeneous agents that generates a large equity premium, while simultaneously matching stock market participation and individual asset holdings. The high risk premium is driven by incomplete risk sharing among stockholders, which results from the...

Persistent link: https://www.econbiz.de/10010744865

Are annuities value for money?: who can afford them?

Lopes, Paula - London School of Economics (LSE) - 2003

This paper solves an empirically parameterized model of households’ optimal demand for nominal and inflation indexed annuities. The model incorporates mortality, inflation, and real interest rate risk. The model draws some interesting predictions. First, the welfare calculations on the access...

Persistent link: https://www.econbiz.de/10010745194

The objective benefits of subjective well-being

De Neve, Jan-Emmanuel; Diener, Ed; Tay, Louis; Xuereb, Cody - London School of Economics (LSE) - 2013

The aim of this paper is to survey the 'hard' evidence on the effects of subjective well-being. In doing so, we complement the evidence on the determinants of well-being by showing that human well-being also affects outcomes of interest such as health, income, and social behaviour. Generally, we...

Persistent link: https://www.econbiz.de/10010745197

Rare events and annuity market participation

Lopes, Paula; Michaelides, Alexander - London School of Economics (LSE) - 2005

We investigate whether a rare event (like the default of the annuity provider) can explain the annuity market participation puzzle. High risk aversion is needed to change behavior in the presence of such a disastrous shock but higher risk aversion also makes annuities more valuable. Therefore,...

Persistent link: https://www.econbiz.de/10010745400

A model of aggregate demand and unemployment

Michaillat, Pascal; Saez, Emmanuel - London School of Economics (LSE) - 2013

We present a static model of aggregate demand and unemployment. The economy has a nonproduced good, a produced good, and labor. Product and labor markets have matching frictions. A general equilibrium is a set of prices, market tightnesses, and quantities such that buyers and sellers optimize...

Persistent link: https://www.econbiz.de/10010745710