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How far can shoe-leather go in explaining the welfare cost of inflation? Using a unique set of microeconomic data on households, we estimate the parameters of the demand for money derived from the generalized Baumol-Tobin model. Our data set contains information on average holdings of cash, on...
Persistent link: https://www.econbiz.de/10013220397
This study investigates the stability of long-run log-linear demand functions for narrowly defined monetary aggregates (M1, Monetary Base) in the U.S. during the post World War II period. The hypotheses that the individual time series which appear in such equations (real M1, real Monetary Base,...
Persistent link: https://www.econbiz.de/10013218424
This study investigates the equilibrium demand for narrowly defined monetary aggregate during the Great Depression. We find evidence in support of a stable demand for real balance, but no evidence in support of stable demand functions for real currency and real monetary base. This is consistent...
Persistent link: https://www.econbiz.de/10013232912
Asset prices plunged between 2007 and 2010 but then rebounded from 2010 to 2013. The most telling finding is that median wealth plummeted by 44 percent over years 2007 to 2010, almost double the drop in housing prices. The inequality of net worth, after almost two decades of little movement, was...
Persistent link: https://www.econbiz.de/10013040531
.S. household leverage from 2002 to 2006 and the increase in defaults from 2006 to 2008. Employing land topology-based housing …
Persistent link: https://www.econbiz.de/10013151131
household of only three people, in 1850 household size was twice that figure. Further, both the number of children and the … number of adults in a household have fallen dramatically. We develop a simple theory of household size where living with … others is beneficial solely because the costs of household public goods can be shared. In other words, we abstract from intra …
Persistent link: https://www.econbiz.de/10013155024
While financial knowledge has been linked to improved financial behavior, there is little consensus on the value of financial education, in part because rigorous evaluation of various programs has yielded mixed results. However, given the heterogeneity of financial education programs in the...
Persistent link: https://www.econbiz.de/10013052686
We examine the effect of rising U.S. house prices on borrowing and spending from 2002 to 2006. There is strong heterogeneity in the marginal propensity to borrow and spend. Households in low income zip codes aggressively liquefy home equity when house prices rise, and they increase spending...
Persistent link: https://www.econbiz.de/10013053478
that motivated the study. As a middle ground, we construct household-based measures of labor supply by within-household … aggregating answers to the usual weeks and hours worked questionnaire items. Household (H) measures are substantially different …
Persistent link: https://www.econbiz.de/10013212919
I use the Survey of Consumer Finances (SCF) to analyze wealth trends from 1983 to 2013. Asset prices plunged between … mean wealth over the 1983-1989, 1989-2001, 2001-2007, 2007-2010, and 2010-2013 periods, and implicit savings were negative … savings rates between the top one percent and the middle three wealth quintiles. Over 1983-1989, the higher savings rate of …
Persistent link: https://www.econbiz.de/10012982014