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retirement savings systems may affect household welfare by relaxing these constraints. This paper uses a calibrated partial … find ex-ante welfare gains equivalent to a 3.7% increase in consumption from the investment of half of retirement wealth in …
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A typical household has a home mortgage as its most significant financial contract. The form of this contract is correspondingly important. This paper studies the choice between a fixed-rate (FRM) and an adjustable-rate (ARM) mortgage. In an environment with uncertain inflation, a nominal FRM...
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