This paper shows, from the consumer’s budget constraint, that expected future labor income growth rates and the residuals of the cointegration relation among log consumption, log asset wealth and log current labor income (summarized by the variable cay of Lettau and Ludvigson (2001a)), should...

National accountants treat as consumption all expenditure incurred in purchasing consumer durables and in forming intangible assets such as knowledge, education and good health. The case is made in this paper that the national accounts measures of saving and investment understate both the extent...

This article highlights intangible capital, management practices, and human capital as areas for future productivity research. It also stresses the importance of developing reliable productivity estimates for emerging and developing countries, and of enhancing collaboration between national...

Modern macroeconomic theory utilises optimal control techniques to model the maximisation of individual well-being using a lifetime utility function. Agents face choices over current and future consumption (with resultant implied savings decisions) seeking to maximise the present value of...

Modern macroeconomic theory utilises optimal control techniques to model the maximisation of individual well-being using a lifetime utility function. Agents face choices over current and future consumption (with resultant implied savings decisions) seeking to maximise the present value of...

This paper shows a significant and causal positive relationship between good institutions and sustainability. While sustainability is measured with the adjusted net saving (ANS) indicator, institutional quality is measured using an average of six dimensions of governance. An instrumental...

Sustainable development requires that the per capita productive base or comprehensive wealth of an economy should, at least, not decline over the period of time. This study provides estimates of the growth rate of per capita comprehensive wealth for the Indian economy for the period 1991-2006....

We present theoretical and empirical results on consumption during an enmployment spell.

The coalition agreement of November 2013 includes a number of specific and ambitious goals relating to economic and social development. For instance, investment in infrastructure is to be increased and the income situation of certain groups of pensioners and employees improved through higher...

Using a Mortensen-Pissarides search-and-matching framework, this paper investigates the importance of search frictions in determining the welfare and distributional effects of tax reforms that re-allocate the tax burden from capital to labour income. Calibrating the model to the UK economy, we...