Showing 1 - 10 of 11
Throughout the 21st century, population aging in the United States will lead to increases in the number of elderly people requiring some form of living assistance which, as some argue, is to be seen as a burden on society, straining old-age insurance systems and requiring younger agents to...
Persistent link: https://www.econbiz.de/10012893609
We construct and estimate a formal economic model of mental accounting where utility maximizing consumers facing rationality constraints infrequently update their desired expenditure budgets for different categories of consumption. We use latent Bayesian inference to estimate the model on a...
Persistent link: https://www.econbiz.de/10012860913
In his 1999 summary of all things mental accounting (see Thaler [21]), Richard Thaler describes one of the primary components of mental accounting as the budgeting of specific utility-providing activities which can depend, but does not have to, on the resources used to fund those activities. The...
Persistent link: https://www.econbiz.de/10012860914
We construct a unifying theory of two-stage budgeting and bounded rationality with mental accounting features. Mental accounting and rational inattention induce behavioral wedges between first-stage and second-stage expenditure budgets. Because reviewing one’s financial activities is...
Persistent link: https://www.econbiz.de/10013241866
Throughout the 21st century, population aging in the United States will lead to increases in the number of elderly people requiring some form of living assistance which, as some argue, is to be seen as a burden on society, straining old-age insurance systems and requiring younger agents to...
Persistent link: https://www.econbiz.de/10012479454
Persistent link: https://www.econbiz.de/10011983538
Persistent link: https://www.econbiz.de/10012204801
Using endogenous, age-dependent measures of the value of statistical lives (VSL), this paper examines the demographic implications of recessions driven by disease contagions. Depending on the age-distribution mortality profile of the disease, long-run welfare losses resulting from the recession...
Persistent link: https://www.econbiz.de/10014096062
We construct a general equilibrium model with home production where consumers choose how to spend their off-market time using market consumption purchases. The time-intensities and productivities of different home production activities determine the degree to which variation in income and...
Persistent link: https://www.econbiz.de/10013300824
A recent literature has provided empirical evidence that markups are increasing and are heterogeneous across firms. In standard monopolistic competition models, such heterogeneity implies inefficiency even in the presence of free entry. We enrich the standard model of monopolistic competition...
Persistent link: https://www.econbiz.de/10014349344