Researchers in a variety of important economic literatures have assumed that current income variables as proxies for … lifetime income variables follow the textbook errors-in-variables model. In an analysis of Social Security records containing …

with income) is instead due to the permanent nature of the income shocks. We use US household-level data to estimate … preference parameters and income profiles, and then simulate consumption profiles for different education groups. Our simulated …

Existing studies of the impact of conviction on income and employment do not consider life cycle issues. We postulate … effect on income for offenders under age 25 and an increasingly negative and significant impact for offenders over age 30 …. These results imply that the present value of income lost as a result of conviction varies over the life cycle, reaching a …

This paper presents an operational meaning to the concept of the variance in lifetime income in terms of the discounted … lifetime income, and we refer to an earlier paper by Eden (1977) to show how this variance-age profile can be used to compare … the riskiness of alternative labor income paths. Finally the estimation technique is applied to Israeli data in order to …

In this paper we reassess the evidence on labor income risk. There are two leading views on the nature of the income … process in the current literature. The first view, which we call the "Restricted Income Profiles" (RIP) process, holds that … individuals are subject to large and very persistent shocks, while facing similar life-cycle income profiles. The alternative view …

wealth-income ratio. Model parameters, including preferences, the cost of stock market participation and portfolio adjustment … matters through two channels: the mean of income and the discount factor …

This paper reexamines the consistency of the permanent income hypothesis with aggregate, post-war, United States data …. The permanent income hypothesis is nested within a more general model in which a fraction of income accrues to individuals … who consume their current income rather than their permanent income. This fraction is estimated to be 40 or 50 percent …

This paper argues that precautionary savings against uncertain income comprise a large fraction of aggregate savings. A … second-order Taylor-Series approximation of the Euler equations. Using empirical measures of income uncertainty, I find that …

Using panel data for a sample of households in Utah from 1850 to 1900 we find income and wealth age profiles that are … a relationship between age-income and age-wealth profiles that is consistent with a life-cycle model of consumption … given a concave and peaked age-income profile: households accumulate and then begin to draw down wealth holdings, the age …