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more, generating realistic dynamics. In the consumption-savings model, the consumer decides to pay little or no attention …
Persistent link: https://www.econbiz.de/10012456824
A key open question in economics is the practical, portable modeling of bounded rationality. In this short note, I report ongoing progress that is more fully developed elsewhere. I present some results from a new model in which the decision-maker builds a simplified representation of the world....
Persistent link: https://www.econbiz.de/10012460875
This paper explores sources of complexity in dynamic optimization, examining how individuals navigate variation in incomes, prices, and returns in ten-period consumption-saving decisions. Our findings reveal that dynamic optimization poses significant challenges, resulting in suboptimal choices...
Persistent link: https://www.econbiz.de/10015056146
We apply numerical dynamic programming to multi-asset dynamic portfolio optimization problems with proportional transaction costs. Examples include problems with one safe asset plus two to six risky stocks, and seven to 360 trading periods in a finite horizon problem. These examples show that it...
Persistent link: https://www.econbiz.de/10012459952
traditional culprits of increasing savings supply and technological growth slowdown …
Persistent link: https://www.econbiz.de/10012480933
innovation project, so local saving does not matter for growth. In our empirical exploration we show that lagged savings is … rather than through capital accumulation. Further, we show that savings is significantly associated with higher levels of FDI …
Persistent link: https://www.econbiz.de/10012466393
This paper compares the dynamics of two general equilibrium models of endogenous growth in which agents have comparison utility.' In the inward-looking' economy, individuals care about how their consumption in the current period compares to their own consumption in the past (one way to describe...
Persistent link: https://www.econbiz.de/10012472675
We examine the relationship between income growth and saving using both cross-country and household data. At the aggregate level, we find that growth Granger causes saving, but that saving does not Granger cause growth. Using household data, we find that households with predictably higher income...
Persistent link: https://www.econbiz.de/10012474476
This paper documents the life-cycle patterns of household portfolios in Canada, and investigates several hypotheses about asset accumulation and allocation. Inferences are drawn from the 1999 Survey of Financial Security, with some comparisons to earlier wealth surveys from 1977 and 1984. I find...
Persistent link: https://www.econbiz.de/10012467829
We assess the impact of 401(k) plan design on four different 401(k) savings outcomes: participation in the 401(k) plan … have an important effect on all of these savings outcomes. This suggests an important role for both employers in …
Persistent link: https://www.econbiz.de/10012468207