This paper develops a framework for the quantitative analysis of individual income dynamics, mobility and welfare …. Individual income is assumed to follow a stochastic process with two (unobserved) components, an i.i.d. component representing … measurement error or transitory income shocks and an AR(1) component representing persistent changes in income. We use a tractable …

income. We use household-level data to explain the postponing of consumption despite rapid income growth. Tracing cohorts …

Investing in human capital increases lifetime income, but these investments may involve substantial risk. In this paper … income, and to calculate certainty equivalent lifetime income at different levels of education. We find that university … education is associated with about a half a million euro increase in discounted lifetime disposable income compared to …

. The present value of human capital is determined by all future income flows, which at the same time constitute the … individual as well as the total tax base of a nation. Therefore, the income of the productive population determines the total tax … well as the future gross income flows. The costs of public goods and the transfer expenditures have to be financed from the …