Showing 1 - 10 of 14
Several explanations for the observed limited stock market participation have been offered in the literature. One of the most promising one is the presence of market frictions mostly in the form of fixed entry and/or transaction costs. Empirical studies strongly point to a significant structural...
Persistent link: https://www.econbiz.de/10010293050
In this paper we reassess the evidence on labor income risk. There are two leading views on the nature of the income process in the current literature. The .first view, which we call the .Restricted Income Profiles.(RIP) process, holds that individuals are subject to large and very persistent...
Persistent link: https://www.econbiz.de/10010293069
Significant departures from log normality are observed in income data, in violation of Gibrat’s law. We identify a new empirical regularity, which is that the distribution of consumption expenditures across households is, within cohorts, closer to log normal than the distribution of income. We...
Persistent link: https://www.econbiz.de/10010292940
This paper describes the transmission of income inequality into consumption inequality and in so doing investigates the degree of insurance to income shocks. It combines panel data on income from the PSID with consumption data from repeated CEX cross-sections and distinguishes between permanent...
Persistent link: https://www.econbiz.de/10010292960
Recent theoretical contributions have suggested consumption externalities, or peergroup effects, as a potential explanation for some of the puzzles in macroeconomics and finance. However, the empirical relevance of peer effects for intertemporal consumption choice is a completely open question....
Persistent link: https://www.econbiz.de/10010292999
This paper considers data quality issues for the analysis of consumption inequality exploiting two complementary datasets from the Consumer Expenditure Survey for the United States. The Interview sample follows survey households over four calendar quarters and consists of retrospectively asked...
Persistent link: https://www.econbiz.de/10010293017
particular savings accounts. We consider empirical evidence from these two countries regarding the extent to which funds in some … specific tax advantaged accounts (IRAs in the US, TESSAs and ISAs in the UK) represent new savings. Our best interpretation of … with reshuffling of existing savings. Continuing improvements in data on individual financial behaviour create scope for …
Persistent link: https://www.econbiz.de/10010293021
The 1996 PRWORA reform introduced time limits on the receipt of welfare in the United States. We use variation by state and across demographic groups to provide reduced form evidence showing that such limits led to a fall in welfare claims (partly due to "banking" benefi ts for future use), a...
Persistent link: https://www.econbiz.de/10012028659
We examine the impact of a large high-school fi nancial education program on the intertemporal choices of adolescents. We randomly assigned the program among a sample of almost 1,000 students and measured their intertemporal choices using an incentivized experiment. While intertemporal choices...
Persistent link: https://www.econbiz.de/10010397772
In this paper we document significantly steeper declines in nondurable expenditures in the UK compared to the US, in spite of income paths being similar. We explore several possible causes, including different employment paths, housing ownership and expenses, levels and paths of health status,...
Persistent link: https://www.econbiz.de/10011786830