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Cross-country aggregate data exhibits a strong (positive) relationship between the size of the informal employment and aggregate homeownership rates. We investigate this empirical observation using a cash-in-advance model with housing markets and argue that the rate of inflation is important in...
Persistent link: https://www.econbiz.de/10011091571
We study the impact of an anticipated "baby boom" in an overlapping generations economy.The rise of the working population lowers the wage, and the high demand for assets causes a rise in the price of capital which will be reversed when the baby boomers leave the work-force.However, the swings...
Persistent link: https://www.econbiz.de/10011090451
reinvestment. While most informal savings practices do not imply a lower likelihood of entrepreneurial reinvestment when compared … with formal savings practices, we find a significantly negative effect of saving within the household on the likelihood of …
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Since the early nineties, the Dutch tax system allows for a tax-favored form of risk free savings through employer …-sponsored savings plans (ESSPs).Under some conditions and up to a certain amount, the contributions to this plan are tax-deductible, and ….It suggests that those who have access to this type of savings should participate in them, provided they have some financial …
Persistent link: https://www.econbiz.de/10011090584
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We examine incomplete annuity menus and background risk as possible drivers of divergence from full annuitization. Contrary to what is often suggested in the literature, we find that full annuitization remains optimal if saving is possible after retirement. This holds irrespective of whether...
Persistent link: https://www.econbiz.de/10011090908
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