The Tax Cut and Jobs Act of 2017 (TCJA) made significant changes to corporate and personal federal income taxation, including limiting the SALT (state and local property, income and sales taxes) deductibility to $10,000. States with high SALT tend to vote Democratic. This paper estimates the...

Wealth is distributed more unevenly than income, and one contributing factor might be that richer households earn higher portfolio returns. I uncover one channel that causes portfolio returns to be increasing in wealth: Poorer households consistently buy risky assets in booms-when expected...

Piketty (2017) argues in favor of a multidimensional and relational approach to the analysis of wealth inequality. Specifically, he suggests that social classes should be analyzed in terms of the power and production relations between social groups, not just the percentiles in statistical...

We study the intergenerational transmission of time preferences in a setting without reverse causality concerns. We find substantial transmission of patience from parents to children, which is insensitive to the inclusion of comprehensive sets of administratively reported controls and persists...

Patience affects economic growth, no news. This paper investigates the opposite causal relationship, i.e., how growth influences patience. We propose a simple theoretical framework where heterogeneous parents may choose to transmit their cultural trait - patience - to their offspring. Our model...

This paper employs Swedish data on households' stock holdings to investigate how consumption responds to changes in stock market returns. We instrument the actual capital gains and dividend payments with past portfolio weights. Unrealized capital gains lead to a marginal propensity to consume...

Indoor air pollution in Indian households due to traditional biomass burning is a significant health burden. Clean fuels, such as liquified petroleum gas (LPG), offer sustainable alternatives. Over the years, the LPG adoption rate in India has increased; however, it is not enough to meet the UN...

A tighter monetary policy is generally associated with higher real interest rates on deposits and loans, weaker performance of equities and real estate, and slower growth in employment and wages. How does a household's exposure to monetary policy vary with its age? The size and composition of...

We provide a quantitative theory of deflation and secular stagnation. In our lifecycle framework, an aging population puts persistent downward pressure on the price level, real interest rates, and output. A novel feature of our theory is that it also recognizes the reactions of government...

The current study aims to investigate the impact of academic achievement on child labor. The study utilizes survey data collected from Palestinian children in West Bank schools who are in the primary grades (5th-9th). The results show that increasing a child's academic achievement is...