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With fixed costs of participating in the stock market, consumers with high income will participate in the stock market, but consumers with lower income will not participate. If a fully-funded defined-contribution social security system tries to exploit the equity premium by selling a dollar of...
Persistent link: https://www.econbiz.de/10012471011
This essay discusses the reasons for and implications of the decline in real interest rates around the world over the past several decades. It suggests that the decline in interest rates is largely explicable from trends in saving, growth, and markups. In this environment, greater government...
Persistent link: https://www.econbiz.de/10013210052
, investment in capital goods and a non-traded good. Such an environment is rich enough to explain several phenomena that are … inexplicable in more barren models. We suggest an explanation of why saving and investment may be correlated even with no … restrictions on trade in assets. We explain why a high saving country may nonetheless borrow from abroad to finance investment. We …
Persistent link: https://www.econbiz.de/10012476928
This article examines how the availability of annuities affects savings and inequality in economies in which neither … CBS utility function indicate that perfecting annuity insurance can significantly reduce national savings. Indeed, the … savings …
Persistent link: https://www.econbiz.de/10012477847
increases in domestic savings rates induce approximately equal increases in domestic rates of investment. New estimates for the … flows than to their short-run behavior. Coefficient estimates based on annual variations in savings and investment are … post-OPEC period 1974-79 imply that each extra dollar of domestic saving increases domestic investment by approximately 85 …
Persistent link: https://www.econbiz.de/10012478160
, does not allow separation of the savings decisions of agents from the investment decisions of firms. Investment is … equilibrium used in macroeconomics characterizes both the savings-consumption decision and the investment decision, or … essentially passive: the "one good" assumption leads to a perfectly elastic investment supply; the absence of installation costs …
Persistent link: https://www.econbiz.de/10012478226
This paper examines the characteristics of and interactions among measures to effect saving and investment incentives … reduction in interest taxation yielding neutrality in the presence of partial expensing of real investment or equivalent … investment incentive …
Persistent link: https://www.econbiz.de/10012478486
"hump" savings. A major difference between this study and previous investigations of this issue is the use of more accurate … savings. This paper suggests the importance of and need for substantially greater research and data collection on … intergenerational transfers. fife-cycle models of savings that emphasize savings for retirement as the dominant form of apical …
Persistent link: https://www.econbiz.de/10012478700
investment rates observed in OECD countries. We find that once controlling for general equilibrium effects the saving …
Persistent link: https://www.econbiz.de/10012463130
convex cost of adjustment. A baby boom increases national saving and investment and thus causes an increase in the price of …. Social Security can potentially affect national saving and investment, though in the long run, it does not affect the price …
Persistent link: https://www.econbiz.de/10012469499