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We propose a new method to test for efficient risk pooling that allows for intertemporal smoothing, non-homothetic consumption, and heterogeneous risk and time preferences. The method is composed of three steps. The first one allows for precautionary savings by the aggregate risk pooling group....
Persistent link: https://www.econbiz.de/10013334347
Heathcote et al. (2010) conducted an empirical analysis of several dimensions of inequality in the United States over …, the gender wage gap has kept shrinking. Both individual- and household-level income inequality have continued to rise at … the top, while the cyclical component of inequality dominates dynamics below the median. Inequality in consumption …
Persistent link: https://www.econbiz.de/10014322873
Does mental accounting matter for total consumption expenditures? We exploit a unique setting in which individuals exogenously received a new credit card, without requesting one. Using random variation in the time of receipt we show that individuals temporarily increase total consumption...
Persistent link: https://www.econbiz.de/10014337846
uncertainty, is the overall elasticity of taxable income. We provide new estimates of this elasticity which address identification … income, and on variation in the elasticity of taxable income by income group. We find that the overall elasticity of taxable … income is approximately 0.4; the elasticity of real income, not including tax preferences, is much lower. We also estimate …
Persistent link: https://www.econbiz.de/10012471264
comparisons between very similar groups, are robust to underlying changes in the income distribution, such as a rise in inequality …
Persistent link: https://www.econbiz.de/10012471417
compensated elasticity of income with respect to tax rates. These models are used to perform simulations of bunching and calibrate … the key parameters (the behavioral elasticity and the extent to which taxpayers control their income) to the empirical … income distributions. Except for low income earners, the behavioral elasticity consistent with the empirical results is small …
Persistent link: https://www.econbiz.de/10012471418
Demand elasticities and other features of demand are critical determinants of the answers to most positive and normative questions about market power or the functioning of markets in practice. As a result, reliable demand estimation is an essential input to many types of research in Industrial...
Persistent link: https://www.econbiz.de/10012629525
This paper reviews a variety of estimates of the demand and supply elasticities of educated labor. It finds that elasticities of substitution between more and less educated labor range fran 1.0 to 2.0 and that elasticities of the supply of students to colleges are also on the order of 1.0 to 2.0...
Persistent link: https://www.econbiz.de/10012478063
This paper investigates the magnitude of the elasticity of demand for labor in time series data using more general and … elasticity, of demand with respect to real wages is much larger than the estimates in the literature, indicating much greater …
Persistent link: https://www.econbiz.de/10012478840
function of current unemployment and vacancy rates, and three sufficient statistics: elasticity of the Beveridge curve … remained at that level until 2019. These variations are caused by changes in the level and elasticity of the Beveridge curve …
Persistent link: https://www.econbiz.de/10012480417