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Choi, Syngjoo; Kariv, Shachar; Wieland M?ller; … - In: American Economic Review 104 (2014) 6, pp. 1518-50

Revealed preference theory offers a criterion for decision-making quality: if decisions are high quality then there exists a utility function the choices maximize. We conduct a large-scale experiment to test for consistency with utility maximization. Consistency scores vary markedly within and...

Persistent link: https://www.econbiz.de/10010777186

Reference-Dependent Consumption Plans

Koszegi, Botond; Rabin, Matthew - In: American Economic Review 99 (2009) 3, pp. 909-36

We develop a rational dynamic model in which people are loss averse over changes in beliefs about present and future consumption. Because changes in wealth are news about future consumption, preferences over money are reference-dependent. If news resonates more when about imminent consumption...

Persistent link: https://www.econbiz.de/10005014649

Inheritances, Intergenerational Transfers, and the Accumulation of Health

Carman, Katherine Grace - In: American Economic Review 103 (2013) 3, pp. 451-55

This paper considers the mechanisms behind a positive correlation between inheritances and health. First, there may … merely be a correlation: those from families with enough wealth to provide an inheritance tend to have better health. Second …, financial resources could be used to purchase inputs to health. Third, bequests may signal a stronger interest in one's child …

Persistent link: https://www.econbiz.de/10010659351

Life Insurance and Household Consumption

Hong, Jay H.; Ríos-Rull, José-Víctor - In: American Economic Review 102 (2012) 7, pp. 3701-30

Using life insurance holdings by age, sex, and marital status, we infer how individuals value consumption in different demographic stages. We estimate equivalence scales and bequest motives simultaneously within a fully specified model where agents face US demographics and save and purchase life...

Persistent link: https://www.econbiz.de/10011129967

The Housing Market(s) of San Diego

Landvoigt, Tim; Piazzesi, Monika; Schneider, Martin - In: American Economic Review 105 (2015) 4, pp. 1371-1407

This paper uses an assignment model to understand the cross section of house prices within a metro area. Movers' demand for housing is derived from a life-cycle problem with credit market frictions. Equilibrium house prices adjust to assign houses that differ by quality to movers who differ by...

Persistent link: https://www.econbiz.de/10011211792

Why Don't the Poor Save More? Evidence from Health Savings Experiments

Dupas, Pascaline; Robinson, Jonathan - In: American Economic Review 103 (2013) 4, pp. 1138-71

technologies can substantially increase investment in preventative health and reduce vulnerability to health shocks. Simply … providing a safe place to keep money was sufficient to increase health savings by 66 percent. Adding an earmarking feature was …

Persistent link: https://www.econbiz.de/10010815703

The Spending and Debt Response to Minimum Wage Hikes

Aaronson, Daniel; Agarwal, Sumit; French, Eric - In: American Economic Review 102 (2012) 7, pp. 3111-39

Immediately following a minimum wage hike, household income rises on average by about $250 per quarter and spending by roughly $700 per quarter for households with minimum wage workers. Most of the spending response is caused by a small number of households who purchase vehicles. Furthermore, we...

Persistent link: https://www.econbiz.de/10010815749

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

Using over two decades of Survey of Consumer Finances data and a pseudo-panel technique, we measure the impact of the 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...

Persistent link: https://www.econbiz.de/10010773992

Immigration and Inequality

Card, David - In: American Economic Review 99 (2009) 2, pp. 1-21

Persistent link: https://www.econbiz.de/10004999865

The Response of Household Saving to the Large Shock of German Reunification

Fuchs-Schundeln, Nicola - In: American Economic Review 98 (2008) 5, pp. 1798-1828

German reunification was a large, unexpected shock for East Germans. Exploiting German reunification as a natural experiment, I analyze the validity of the life-cycle consumption model. I derive three stylized features concerning the saving behavior of East versus West Germans after...

Persistent link: https://www.econbiz.de/10005761587