classical option theory. A substantial literature has emerged examining the problem, focusing on the characteristics of the … interactions between the status of the prepayment option and the influence of income and collateral constraints upon prepayment … American Housing Survey. Among the findings are the following: when the household is either collateral constrained or income …

We have collected data on the one-year-ahead income expectations of members of American households in our Survey of … income-expectations questions take this form: `What do you think is the percent chance (or what are the chances out of 100 …) that your total household income, before taxes, will be less than Y over the next 12 months?' We use the responses to a …

This paper discusses nominal income targeting as a possible rule for the conduct of monetary policy. We begin by … particular, three types of nominal income targets, which differ in how they respond to past shocks, to prices, and real economic … future nominal income could playa role in ensuring that the central bank does not deviate from its announced target. To show …

is taken by itself. It is argued that these results cast doubt, not onlife-cycle theory itself, but on the representative … interestrate.The second part of the paper is concerned with the time-series representation of disposable income and with it … simplications for the behavior of consumption under the assumptions of the life-cycle model. If real disposable income is truly a …

This paper compares nominal income and monetary targets in a standard aggregate demand - aggregate supply framework. If … the desirability of policies is measured by their effect on the unconditional variance of output, nominal income targeting … the opposite of the condition that in Bean (1984) is sufficient to make nominal income targeting preferable.This points …

Section II. Section IV briefly reviews the theoretical controversy of the relationship between money and income and presents …

facing uninsurable idiosyncratic labor income risk. The Ramsey government internalizes the general equilibrium feedback of … optimal aggregate saving rate is independent of income risk. The optimal time-invariant tax on capital is increasing in income … that the optimal steady state saving rate is increasing in income risk if and only if the intertemporal elasticity of …

an estimate of the taxable income elasticity from the bunching pattern around a kink point. The bunching estimator has … identify the taxable income elasticity when the functional form of the distribution of preference heterogeneity is unknown. We … find that an observed distribution of taxable income around a kink point or over the whole budget set can be consistent …