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The Distribution of Wealth and the Marginal Propensity to Consume
Carroll, Christopher D. - 2014
dynamics. When the model is modified in a way that permits it to match empirical measures of wealth inequality in the U.S., we … how the shock is distributed across categories of households (e.g., low-wealth versus high-wealth households) …
Persistent link: https://www.econbiz.de/10013057669
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Does consumption inequality mirror wealth inequality in the survey of consumer finances?
Abbott, Brant; Brace, Robin - 2020 - This draft: March 16, 2020
A method to impute consumption expenditure inequality between wealth groups in the Survey of Consumer Finances is … provided, allowing for measurement error that is correlated with income and wealth. Identification is derived from observing … between top and bottom wealth quintiles is estimated to have increased by 50% between 2004 and 2013, indicating that observed …
Persistent link: https://www.econbiz.de/10012183653
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Do tax cuts increase consumption? : an experimental test of Ricardian Equivalence ; conference paper
Meissner, Thomas; Rostam-Afschar, Davud - 2014
This paper tests whether the Ricardian Equivalence proposition holds in a life cycle consumption laboratory experiment. This proposition is a fundamental assumption underlying numerous studies on intertemporal choice and has important implications for tax policy. Using nonparametric and panel...
Persistent link: https://www.econbiz.de/10010483254
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Preferences over wealth : experimental evidence
Gechert, Sebastian; Siebert, Jan - 2019
Preferences over wealth can explain why households do not spend more when real interest rates fall, because they save … more than optimal under a standard model. However, little is known about preferences over wealth empirically. We run an … wealth, consistent with wealth entering the utility function directly. …
Persistent link: https://www.econbiz.de/10012098818
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Unsecured debt, consumer bankruptcy, and small business
Meh, Césaire Assah (contributor); Terajima, Yaz (contributor) - 2008
In this paper we develop a quantitative model of entrepreneurial activity (risk-taking) and consumer bankruptcy choices and use the model to study the effects of bankruptcy regulations on entrepreneurial activity, bankruptcy rate and welfare. We show that eliminating bankruptcy exemptions leads...
Persistent link: https://www.econbiz.de/10003641358
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Trade-off between consumption growth and inequality : theory and evidence for Germany
Xie, Runli - 2009
This paper examines the structure and evolution of consumption and consumption growth inequality. Once heterogeneous agents relate their neighbors' consumption to their own, consumption volatility and inequality are affected. The relationship predicted between the group average consumption...
Persistent link: https://www.econbiz.de/10003850730
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Do demographics prevent consumer aggregates from reflecting micro-level preferences?
Koulovatianos, Christos; Schröder, Carsten; Schmidt, Ulrich - 2014
Most simulated micro-founded macro models use solely consumer-demand aggregates in order to estimate deep economy-wide preference parameters, which are useful for policy evaluation. The underlying demand-aggregation properties that this approach requires, should be easy to empirically disprove:...
Persistent link: https://www.econbiz.de/10010419864
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Inequality and household finance during the consumer age
Cynamon, Barry Z.; Fazzari, Steven M. - 2013
One might expect that rising US income inequality would reduce demand growth and create a drag on the economy because higher-income groups spend a smaller share of income. But during a quarter century of rising inequality, US growth and employment were reasonably strong, by historical standards,...
Persistent link: https://www.econbiz.de/10009703677
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Consumption growth and volatility with consumption externalities
Xie, Runli - 2010 - This draft: November, 2010
This paper studies the link between group-specific consumption growth and volatility within a framework of heterogeneous agents, under the assumption of a consumption externality. Household preferences are related to the volatility through asset holding decisions: volatility decreases with...
Persistent link: https://www.econbiz.de/10008749791
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Is there heterogeneity in the response of consumption to income shocks?
Ludwig, Johannes - 2015
While recently more and more research has focused on the aggregate response of consumption to income shocks, little is known about how this response differs for households at different ends of the income distribution. This paper investigates how consumption reacts to transitory and permanent...
Persistent link: https://www.econbiz.de/10011404289