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Retirement Security in an Aging Population
Poterba, James M. - In: American Economic Review 104 (2014) 5, pp. 1-30
Elderly individuals exhibit wide disparities in their sources of income. For those in the bottom half of the income distribution, Social Security is the most important source of support; program changes would directly affect their well-being. Income from private pensions, assets, and earnings...
Persistent link: https://www.econbiz.de/10010815685
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Do Wealth Fluctuations Generate Time-Varying Risk Aversion? Micro-evidence on Individuals
Brunnermeier, Markus K.; Nagel, Stefan - In: American Economic Review 98 (2008) 3, pp. 713-36
response to wealth fluctuations. Persistent habits, consumption commitments, and subsistence levels can generate time …-varying risk aversion with the consequence that when the level of liquid wealth changes, the proportion a household invests in … households invest in risky assets is not affected by wealth changes. Instead, one of the major drivers of household portfolio …
Persistent link: https://www.econbiz.de/10005757146
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How Financial Incentives Induce Disability Insurance Recipients to Return to Work
Kostol, Andreas Ravndal; Mogstad, Magne - In: American Economic Review 104 (2014) 2, pp. 624-55
Using a local randomized experiment that arises from a sharp discontinuity in Disability Insurance (DI) policy in Norway, we provide transparent and credible identification of how financial incentives induce DI recipients to return to work. We find that many DI recipients have considerable...
Persistent link: https://www.econbiz.de/10010736779
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Disparities in Wealth Accumulation and Loss from the Great Recession and Beyond
McKernan, Signe-Mary; Ratcliffe, Caroline; Steuerle, Eugene - In: American Economic Review 104 (2014) 5, pp. 240-44
Great Recession on US family wealth relative to the counterfactual of what wealth would have been given wealth accumulation … trajectories. Our synthetic cohort-level models find that the Great Recession reduced average family wealth by 28.5 percent … the 1980s. The housing market was only part of the story; all major wealth components fell as a result of the Great …
Persistent link: https://www.econbiz.de/10010773992
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Inequality, Leverage, and Crises
Kumhof, Michael; Rancière, Romain; Winant, Pablo - In: American Economic Review 105 (2015) 3, pp. 1217-45
The paper studies how high household leverage and crises can be caused by changes in the income distribution. Empirically, the periods 1920-1929 and 1983-2008 both exhibited a large increase in the income share of high-income households, a large increase in debt leverage of low- and...
Persistent link: https://www.econbiz.de/10011188462
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Understanding the Mechanisms through Which an Influential Early Childhood Program Boosted Adult Outcomes
Heckman, James; Pinto, Rodrigo; Savelyev, Peter - In: American Economic Review 103 (2013) 6, pp. 2052-86
A growing literature establishes that high quality early childhood interventions targeted toward disadvantaged children have substantial impacts on later life outcomes. Little is known about the mechanisms producing these impacts. This paper uses longitudinal data on cognitive and personality...
Persistent link: https://www.econbiz.de/10010815645
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Entropy and the Value of Information for Investors
Cabrales, Antonio; Gossner, Olivier; Serrano, Roberto - In: American Economic Review 103 (2013) 1, pp. 360-77
that this informativeness ordering is complete and is represented by the decrease in entropy of his beliefs, regardless of … his preferences, initial wealth, or investment problem. We also show that no prior-independent informativeness ordering …
Persistent link: https://www.econbiz.de/10010815577
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Who Is (More) Rational?
Choi, Syngjoo; Kariv, Shachar; Wieland M?ller; … - In: American Economic Review 104 (2014) 6, pp. 1518-50
related to wealth: a standard deviation increase in consistency is associated with 15-19 percent more household wealth. This … association is quantitatively robust to conditioning on correlates of unobserved constraints, preferences, and beliefs …
Persistent link: https://www.econbiz.de/10010777186
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Salience and Asset Prices
Bordalo, Pedro; Gennaioli, Nicola; Shleifer, Andrei - In: American Economic Review 103 (2013) 3, pp. 623-28
We present a simple model of asset pricing in which payoff salience drives investors' demand for risky assets. The key implication is that extreme payoffs receive disproportionate weight in the market valuation of assets. The model accounts for several puzzles in finance in an intuitive way,...
Persistent link: https://www.econbiz.de/10010659418
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Thar SHE Blows? Gender, Competition, and Bubbles in Experimental Asset Markets
Eckel, Catherine C.; Füllbrunn, Sascha C. - In: American Economic Review 105 (2015) 2, pp. 906-20
Do women and men behave differently in financial asset markets? Our results from an asset market experiment show a marked gender difference in producing speculative price bubbles. Mixed markets show intermediate values, and a meta-analysis of 35 markets from different studies confirms the...
Persistent link: https://www.econbiz.de/10011156803