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Confronting the representative consumer with household-size heterogeneity
Koulovatianos, Christos; Schröder, Carsten; Schmidt, Ulrich - 2010
Much analysis in macroeconomics empirically addresses economy-wide incentives behind consumer/investment choices by using insights from the way a single representative household would behave. Heterogeneity at the micro level can jeopardize attempts to back up the representative consumer...
Persistent link: https://www.econbiz.de/10010285745
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International Wealth Effects
Slacalek, Jirka - 2006
This paper investigates the wealth effect for 16 industrial countries using the recently proposed technique that exploits the sluggishness of consumption growth. I estimate that the longrun marginal propensity to consume from wealth varies from less than 0.5 cents in France to 4.5 cents in the...
Persistent link: https://www.econbiz.de/10010260965
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What Drives Personal Consumption? The Role of Housing and Financial Wealth
Slacalek, Jirka - 2006
I construct a new dataset with financial and housing wealth in 16 countries and investigate the effect of wealth on …-based, Anglo?Saxon and non euro area economies. The effect of housing wealth is somewhat smaller than that of financial wealth for … most countries, but not the US and the UK. The housing wealth effect has risen substantially after 1988 as it has become …
Persistent link: https://www.econbiz.de/10010260998
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Unemployment and portfolio choice: Does persistence matter?
Kuzin, Vladimir N.; Bremus, Franziska M. - 2010
We use a life cycle model of consumption and portfolio choice to study the effects of social security on the investment decisions of households for the European case. Our model is mainly based on the one developed by Cocco, Gomes, and Maenhout (2005). We extend it by unemployment risk using...
Persistent link: https://www.econbiz.de/10010291783
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Precautionary and entrepreneurial saving: new evidence from German households
Fossen, Frank M.; Rostam-Afschar, Davud - 2009
The well-documented positive correlation between income risk and wealth was interpreted as evidence for high amounts of precautionary wealth in various studies. However, the large estimates emerged from pooling non-entrepreneurs and entrepreneurs without controlling for heterogeneity. This paper...
Persistent link: https://www.econbiz.de/10010271125
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Bad luck or bad decisions? Macroeconomic implications of persistent heterogeneity in cognitive skills and overconfidence
Pfäuti, Oliver; Seyrich, Fabian; Zinman, Jonathan - 2024
Business cycle models often abstract from persistent household heterogeneity, despite its potentially significant implications for macroeconomic fluctuations and policy. We show empirically that the likelihood of being persistently financially constrained decreases with cognitive skills and...
Persistent link: https://www.econbiz.de/10014530295
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Household savings decision and income uncertainty
Beznoska, Martin; Ochmann, Richard - 2010
This paper empirically investigates the effects of changes in the interest rate as well as transitory income uncertainty on households' consumption-savings decision. Applying a structural demand model to German survey data, we estimate the uncompensated interest rate elasticity for savings, in...
Persistent link: https://www.econbiz.de/10010285757
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The effect of health and employment risks on precautionary savings
Geyer, Johannes - 2011
This paper extends the idea of using ex-ante risk measures in a model of precautionary savings by explicitly simulating future net-income risks. The uncertainty measure takes into account the interdependency of labour market status and health. The model is estimated for prime age males using the...
Persistent link: https://www.econbiz.de/10010287263
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Liquidity constraints and the permanent income hypothesis: Pseudo panel estimation with German consumption survey data
Beznoska, Martin; Ochmann, Richard - 2012
This paper empirically investigates the relevance of liquidity constraints and excess sensitivity in intertemporal household consumption. Using a pseudo panel that has been constructed on rich German consumption survey data, we estimate the consumption responses to permanent and transitory...
Persistent link: https://www.econbiz.de/10010287275
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Distributional effects of the COVID-19 lockdown
Clemens, Marius; Heinemann, Maik - 2020
A two-sector incomplete markets model with heterogeneous agents can be used to study the distributional effects of the COVID-19 lockdown. While negative aggregate welfare effects of the lockdown are unavoidable, the size of aggregate welfare effects as well as the distribution of the welfare...
Persistent link: https://www.econbiz.de/10012255080