Narrow search
Showing 1 - 10 of 83
Cover Image
On the Evolution of the US Consumer Wealth Distribution
Hintermaier, Thomas; Koeniger, Winfried - In: Review of Economic Dynamics 14 (2011) 2, pp. 317-338
. We find that considering a wide range of net worth percentiles for prime-age consumers between ages 26 and 55 delivers … net worth increases with age while the dispersion of net worth falls with age. The model also predicts some of the … dispersion of net worth for all prime-age consumers, while the model does not predict the observed increase of average net worth …
Persistent link: https://www.econbiz.de/10008670383
Cover Image
Interpreting Life Cycle Inequality Patterns as an Efficient Allocation: Mission Impossible?
Badel, Alejandro; Huggett, Mark - In: Review of Economic Dynamics 17 (2014) 4, pp. 613-629
The life-cycle patterns of consumption, wage and hours inequality observed in U.S. cross-section data are commonly viewed as incompatible with a Pareto efficient allocation. We determine the extent to which these qualitative and quantitative patterns can or cannot be produced by Pareto efficient...
Persistent link: https://www.econbiz.de/10010945607
Cover Image
Saving Rates and Portfolio Choice with Subsistence Consumption
Achury, Carolina; Hubar, Sylwia; Koulovatianos, Christos - In: Review of Economic Dynamics 15 (2012) 1, pp. 108-126
We analytically show that a common across rich/poor individuals Stone-Geary utility function with subsistence consumption in the context of a simple two-asset portfolio-choice model is capable of qualitatively and quantitatively explaining: (i) the higher saving rates of the rich, (ii) the...
Persistent link: https://www.econbiz.de/10008828681
Cover Image
Preferences for Risk in Dynamic Models with Adjustment Costs
Vereshchagina, Galina - In: Review of Economic Dynamics 17 (2014) 1, pp. 86-106
This paper characterizes the solution to a consumption/savings decision problem in which one of the consumption goods involves transaction costs. It then analyzes how such adjustment costs affect consumers' risk attitudes. Previous studies have suggested that transaction costs, by resulting in...
Persistent link: https://www.econbiz.de/10010729239
Cover Image
Bequest Motives and the Annuity Puzzle
Lockwood, Lee - In: Review of Economic Dynamics 15 (2012) 2, pp. 226-243
Few retirees annuitize any wealth, a fact that has so far defied explanation within the standard framework of forward-looking, expected utility-maximizing agents. Bequest motives seem a natural explanation. Yet the prevailing view is that people with plausible bequest motives should annuitize...
Persistent link: https://www.econbiz.de/10008861934
Cover Image
The distribution of household debt in the United States, 1950-2022
Bartscher, Alina K.; Kuhn, Moritz; Schularick, Moritz; … - In: Review of Economic Dynamics 57 (2025), pp. 1-22
Using new household-level data, we study the secular increase in U.S. household debt and its distribution since 1950. Most of the debt were mortgages, which initially grew because more households borrowed. Yet after 1980, debt mostly grew because households borrowed more. We uncover home equity...
Persistent link: https://www.econbiz.de/10015407248
Cover Image
The distribution of household debt in the United States, 1950-2022
Bartscher, Alina K.; Kuhn, Moritz; Schularick, Moritz; … - In: Review of Economic Dynamics 57 (2025), pp. 1-22
Using new household-level data, we study the secular increase in U.S. household debt and its distribution since 1950. Most of the debt were mortgages, which initially grew because more households borrowed. Yet after 1980, debt mostly grew because households borrowed more. We uncover home equity...
Persistent link: https://www.econbiz.de/10015438485
Cover Image
The distribution of household debt in the United States, 1950-2022
Bartscher, Alina K.; Kuhn, Moritz; Schularick, Moritz; … - In: Review of Economic Dynamics 57 (2025), pp. 1-22
Using new household-level data, we study the secular increase in U.S. household debt and its distribution since 1950. Most of the debt were mortgages, which initially grew because more households borrowed. Yet after 1980, debt mostly grew because households borrowed more. We uncover home equity...
Persistent link: https://www.econbiz.de/10015444083
Cover Image
Search for Financial Returns and Social Security Privatization
McKay, Alisdair - In: Review of Economic Dynamics 16 (2013) 2, pp. 253-270
I develop a general equilibrium model in which the quality of household financial decisions is endogenously determined by the incentives to exert effort in learning about financial opportunities. The model generates predictions for asset market participation and returns across households....
Persistent link: https://www.econbiz.de/10010604555
Cover Image
Cross Sectional Facts for Macroeconomists
Krueger, Dirk; Perri, Fabrizio; Pistaferri, Luigi; … - In: Review of Economic Dynamics 13 (2010) 1, pp. 1-14
the top than at the bottom of the distribution. Measuring the age-profile of inequality is challenging because of the …
Persistent link: https://www.econbiz.de/10008487510