between social security and Medicaid. As a result of these interactions, we find that the US social security significantly lowers the cost of financing Medicaid and other welfare programs for the elderly as it reduces the fraction of households who choose to rely on means-tested transfers to...

Poor health, large acute and long-term care medical expenses, and spousal death are significant drivers of impoverishment among retirees. We document these facts and build a rich, overlapping generations model that reproduces them. We use the model to assess the incentive and welfare effects of...

are the computation of the density of the capital stock in the neoclassical growth model and the computation of the wealth density in an incomplete market economy.

We evaluate the joint effects of social security and Medicaid on labor supply, savings, economic inequality, and welfare in an environment with idiosyncratic risk in labor earnings, health expenses, and survival. The model features households consisting males and females; a progressive social...

In 1910 the average American city was a small and densely populated place where the dominant form of intracity transportation was the electric streetcar. Despite the release of the Model T in 1908, less than one percent of Americans owned a car. In contrast, by 1970, almost every family in the...

The Rouwenhorst method of approximating stationary AR(1) processes has been overlooked by much of the literature despite having many desirable properties unmatched by other methods. In particular, we prove that it can match the conditional and unconditional mean and variance, and the first-order...

The objectives of this paper are 1) to assess the impact of medical and nursing home expenses on life-cycle savings and wealth inequality in the U.S., and 2) to quantitatively evaluate the effects of alternative old-age social insurance policies in a general equilibrium framework. We consider a...

income and product account data. The welfare gain from the introduction of personal computers is about 4 percent of consumption expenditure.

We consider a life-cycle model with idiosyncratic risk in earnings, out-of-pocket medical and nursing home expenses, and survival. Partial insurance is available through welfare, Medicaid, and social security. Calibrating the model to the United States we show that savings for old-age,...

The welfare gain to consumers from the introduction of personal computers is estimated here. A simple model of consumer demand is formulated that uses a slightly modified version of standard preferences. The modification permits marginal utility, and hence total utility, to be finite when the...