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Sheshinski, Eytan - 2021

For the last fifty years, countries in Asia and elsewhere witnessed a surge in aggregate savings per capita. Some empirical studies attribute this trend to the increases in life longevity of the populations of these countries. It has been argued that the rise in savings is short-run, eventually...

Persistent link: https://www.econbiz.de/10013317371

Too Slow a Change? Deep Habits, Consumption Shifts and Transitory Tax Policy

van den Bijgaart, Inge - 2018

Habits are an important cause of sluggish consumption adjustment in response to price shocks. This paper studies shifts within the consumption bundle under endogenous habit formation. I put forward a model with good-specific, or 'deep', habits that cause persistence in good-specific consumption....

Persistent link: https://www.econbiz.de/10012918060

Marriage and Consumption Insurance : What's Love Got to Do with it?

Hess, Gregory D. - 2021

This paper explores the role of marriage when markets are incomplete so that individuals cannot diversify their idiosyncratic labor income risk. Ceteris paribus, an individual would prefer to marry a "hedge" (i.e., a spouse whose income is negatively correlated with her own) as it raises her...

Persistent link: https://www.econbiz.de/10013320884

A Theory of Price Adjustment Under Loss Aversion

Ahrens, Steffen; Pirschel, Inske; Snower, Dennis J. - 2021

depends on the consumers’ rational price expectations from the recent past. By implication, demand responses are more elastic … for price increases than for price decreases and thus firms face a downward-sloping demand curve that is kinked at the … consumers’ reference price. Firms adjust their prices flexibly in response to variations in this demand curve, in the context of …

Persistent link: https://www.econbiz.de/10013315600

Are Consumers Planning Consumption According to an Euler Equation?

Dräger, Lena - 2017

Evaluating a new survey dataset of German consumers, we test whether individual consumption plans are formed according to an Euler equation derived from consumption life-cycle models. Estimating several consumption Euler equations, the results are mostly in line with the theory: We find evidence...

Persistent link: https://www.econbiz.de/10012964377

Anticipated Consumption and its Impact on Capital Accumulation and Growth : 'Forward-Looking' vs. 'Backward-Looking' Consumption Reference

Monteiro, Goncalo; Turnovsky, Stephen J. - 2021

It has long been argued that the anticipations of some future event will impact current consumption and well-being in advance of the occurrence of the event itself. This paper introduces this idea of anticipated pleasure into the Ramsey growth model, by assuming that in addition to his own...

Persistent link: https://www.econbiz.de/10013315651

Taxing Bequests and Consumption in the Steady State

Brunner, Johann K.; Pech, Susanne - 2021

We study the optimal tax system in a dynamic model where differences in wages induce differences in inheritances, and the transition from parent ability to child ability is described by a Markov chain. We characterize expected inheritances in the steady state and show that the Atkinson-Stiglitz...

Persistent link: https://www.econbiz.de/10013315698

The Lifecycle of the 47%

Fullerton, Don - 2016

We assess the concentration and duration of zero tax liabilities and of transfer receipts, using data for households with ten to forty years of observations from the Panel Survey of Income Dynamics. We find that neither is strongly concentrated. Nearly 68% owe no federal tax in at least one...

Persistent link: https://www.econbiz.de/10012981348

Game of Zones : The Political Economy of Conservation Areas

Ahlfeldt, Gabriel M.; Möller, Torsten Kristoffer; … - 2021

Provided there are positive external benefits attached to the historic character of buildings, owners of properties in designated conservation areas benefit from a reduction in uncertainty regarding the future of their area. At the same time, the restrictions put in place to ensure the...

Persistent link: https://www.econbiz.de/10013315608

Short-Term Price Effects of a Carbon Tax and Implications for Sectors Competitiveness in Small Open Economies

Gonne, Nicolas - 2021

Asymmetric climate policies are expected to distort the level-playing field regarding international trade, singularly to the detriment of small open economies. The paper develops a flexible method that provides essential input regarding the design of offsetting measures. It builds on...

Persistent link: https://www.econbiz.de/10013316128