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Peer effects and debt accumulation: Evidence from lottery winnings

Gulbrandsen, Magnus A. H. - 2021

I estimate the effect of lottery winnings on peers' debt accumulation using administrative data from Norway. I identify neighbors of lottery winners, and estimate an average debt response of 2.1 percent of the lottery prize among households that live up to ten houses from the winner. Analyzing...

Persistent link: https://www.econbiz.de/10013373821

Portfolios of the rich

Carroll, Christopher D. - 2000

Recent research has shown that 'rich' households save at much higher rates than others (see Carroll (2000); Dynan Skinner and Zeldes (1996); Gentry and Hubbard (1998); Huggett (1996); Quadrini (1999)) This paper documents another large difference between the rich and the rest of the population:...

Persistent link: https://www.econbiz.de/10010293507

Implications of wealth heterogeneity for macroeconomics

Carroll, Christopher D. - 2012

Today's dominant strain of macroeconomic models supposes that aggregate consumption can be understood by assuming the existence of a 'representative agent' whose behavior rationalizes observed outcomes. But representative agent models yield embarrassingly implausible (and empirically inaccurate)...

Persistent link: https://www.econbiz.de/10010397782

How large is the housing wealth effect? A new approach

Carroll, Christopher D.; Otsuka, Misuzu; Slacalek, Jirka - 2006

-quarter) marginal propensity to consume from a $1 change in housing wealth is about 2 cents, with a final longrun effect around 9 cents …. Consistent with most recent studies, we find a housing wealth effect that is substantially larger than the stock wealth effect …

Persistent link: https://www.econbiz.de/10010293502

Housing Wealth and Aggregate Consumption in Sweden

Chen, Jie - 2006

statistical evidences that the movements of aggregate consumption, disposable income, housing wealth and financial wealth are tied … together. However, it also suggests that the short run variations in the Swedish housing market are largely dissociated with … consumer spending. Meanwhile, it is shown that the strength of the linkage between consumption and housing wealth is not …

Persistent link: https://www.econbiz.de/10010321586

On Consequences of State Dependent Preferences for the Pricing of Financial Assets

Danthine, Jean-Pierre; Donaldson, John B.; Giannikos, … - Institut für Schweizerisches Bankwesen <Zürich>; … - 2002

This paper introduces state dependent utility into the standard Mehra and Prescott (1985) economy by allowing the representative agents coefficient of relative risk aversion to vary with the underlying economys growth rate. Existence of equilibrium is proved and its asymptotic properties...

Persistent link: https://www.econbiz.de/10005859325

A behavioral study of Roth versus traditional retirement savings accounts

Bohr, Clement E.; Holt, Charles A.; Schubert, Alexandra V. - 2023

Motivated by a popular perception that Roth accounts are welfare-improving for most people, this paper compares the effects of mandated Traditional (tax-deferred) or Roth (taxprepaid) retirement policies in a controlled laboratory setting. Selection effects, which complicate analyses of...

Persistent link: https://www.econbiz.de/10014442854

The impact of growth on the transmission of patience

Delli Gatti, Domenico; Grazzini, Jakob; Massaro, Domenico; … - 2022

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...

Persistent link: https://www.econbiz.de/10014550324

The reaction of consumer spending and debt to tax rebates: Evidence from consumer credit data

Agarwal, Sumit; Liu, Chunlin; Souleles, Nicholas S. - 2007

We use a new panel dataset of credit card accounts to analyze how consumers responded to the 2001 federal income tax rebates. We estimate the monthly response of credit card payments, spending, and debt, exploiting the unique, randomized timing of the rebate disbursement. We find that on average...

Persistent link: https://www.econbiz.de/10010292101

Theoretical foundations of buffer stock saving

Carroll, Christopher D. - 2004

Buffer-stock versions of the dynamic stochastic optimizing model of saving are now standard in the consumption literature. This paper builds theoretical foundations for rigorous understanding of the main characteristics of buffer stock models, including the existence of a target level of wealth...

Persistent link: https://www.econbiz.de/10010293477