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Heterogeneous Life-Cycle Profiles, Income Riskand Consumption Inequality

Primiceri, Giorgio E.; Rens, Thijs van - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007

Was the increase in income inequality in the US due to permanent shocks or merely to anincrease in the variance of transitory shocks? The implications for consumption and welfaredepend crucially on the answer to this question. We use CEX repeated cross-section data onconsumption and income to...

Persistent link: https://www.econbiz.de/10005861079

Competitive Risk Sharing Contracts with One-Sided Commitment

Krueger, Dirk; Uhlig, Harald - Sonderforschungsbereich Ökonomisches Risiko <Berlin> - 2005

This paper analyzes dynamic equilibrium risk sharing contracts between profit-maximizing intermediaries and a large pool of ex-ante identical agents that face idiosyncratic income uncertainty that makes them heterogeneous ex-post. In any given period, after having observed her income, the agent...

Persistent link: https://www.econbiz.de/10005862334

Consumption Comparisons and Happiness:A Calibration Study

Strulik, Holger - Universität <Hannover> / Wirtschaftswissenschaftliche … - 2009

Does it make us unhappier when we compare our consumptionwith that of the Joneses or our own past achievements? This paper tries ananswer by bringing together two disparate literatures: the macro (growth)theory on habit formation and the applied literature related to the Easterlinparadox. Using...

Persistent link: https://www.econbiz.de/10005867430

The structure of optimal consumption streams ingeneral incomplete markets

Malamud, Semyon; Trubowitz, Eugene - Swiss National Centre of Competence in Research North … - 2008

We prove that for any incomplete market and any concave utilityfunction the marginal propensities to consume and to save are alwayspositive. Furthermore, we introduce a class of incomplete markets thatincludes almost all well known examples of market incompleteness infinance and macroeconomics....

Persistent link: https://www.econbiz.de/10005869069

Ownership Structure, Income Distribution, and Competitive Equilibrium: A Theory of Business Cycles, Human Capital, and Asset Returns

Dai, Quiang - 2000

In this paper, I present a theory of dynamic economic growth, business cycles, and asset pricing that integrates (1) Marx's idea (and emphasized by Klein) of a two-class heterogeneity of the ownership structure of physical capital and human capital in a capitalist society, (2) Keynes' idea of...

Persistent link: https://www.econbiz.de/10005846603

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

TV Channels, Self Control and Happiness

Benesch, Christine; Frey, Bruno S.; Stutzer, Alois - Institut für Empirische Wirtschaftsforschung <Zürich>; … - 2006

In many countries, TV viewers have access to more and more TVchannels. We study whether people can cope with this and watch the amount of TVthey find optimal for themselves or whether they are prone to over-consumption. Wefind that heavy TV viewers do not benefit, but instead report lower life...

Persistent link: https://www.econbiz.de/10005867923

Does watching TV make us happy?

Frey, Bruno S.; Benesch, Christine; Stutzer, Alois - Institut für Empirische Wirtschaftsforschung <Zürich>; … - 2006

Watching TV is a major human activity. Because of its immediate benefits at negligible immediatemarginal costs it is for many people tempting to view TV rather than to pursue more engaging activities.As a consequence, individuals with incomplete control over, and foresight into, their...

Persistent link: https://www.econbiz.de/10005868506

What Inspires Leisure Time Invention?

DAVIS, LEE N.; Davis, Jerome; Hoisl, Karin - Universität <München> / Fakultät für Betriebswirtschaft - 2009

This paper seeks to understand the intriguing but only sparsely explored phenomenon of “leisure timeinvention,” where … over 3,000German inventors, we tested hypotheses on the conditions under which leisure time invention is likelyto arise …. Results suggest that the incidence of leisure time invention is positively related to exposure toa variety of knowledge inputs …

Persistent link: https://www.econbiz.de/10009418809

INTERGENERATIONAL RISK SHARING BY MEANS OF PAY-AS-YOU-GO PROGRAMS - AN INVESTIGATION OF ALTERNATIVE MECHANISMS

Thøgersen, Øystein - CESifo GmbH <München> - 2006

A pay-as-you-go (paygo) pension program may provide intergenerational pooling of risks toindividuals´ labor and capital income over the life cycle. By means of a model that providesilluminating closed form solutions, we demonstrate that the magnitude of the optimal paygoprogram and the nature...

Persistent link: https://www.econbiz.de/10005861192