In this paper, we develop and numerically solve a model of idiosyncratic labour income and idiosyncratic interest rates … to predict the evolution of a wealth distribution over time. Stochastic labour income follows a deterministic growth …

theoretical prediction of a simple model, determines a much lower amount of savings and wealth accumulation and therefore a lower …

Idiosyncratic labor incomes are typically modeled either by stochastic processes with heterogeneous income profiles … (HIPs) or restricted income profiles (RIPs). The HIP assumes that individual labor income grows deterministically at an … unobserved rate and contains a persistent but stationary component, while the RIP assumes that income contains a random walk, a …

Using detailed tax data from the Swiss canton of Bern, I examine how changes in wealth are related to income risk. I … find that only among elderly individuals high kurtosis of income risk may be positively correlated with wealth accumulation … wealth investors experience sharp increases in wealth and income in subsequent periods. Finally, wealth risk is more …

Using detailed tax data from the Swiss canton of Bern, I examine how changes in wealth are related to income risk. I … find that only among elderly individuals high kurtosis of income risk may be positively correlated with wealth accumulation … wealth investors experience sharp increases in wealth and income in subsequent periods. Finally, wealth risk is more …

' labor income and returns on their savings generally accentuates households' demand for risk-free assets and the compensation …We explore the long-run relationship between income risk, inequality, and the macroeconomy in an overlapping …-generations model in which households face uncertain streams of labor income and returns on their savings. To manage those risks …

income levels in the United States or other advanced economies. Such countries remain trapped at a relative low- or middle-income … level. In this article, the authors redefine the concept of income traps as situations in which income levels relative to … relative low- and middle-income traps and examine cross-country historical transitions between income groups at the global and …

We use a calibrated life-cycle model to evaluate why high income households save as a group a much higher fraction of … income than do low income households in US cross-section data. We find that (1) age and relatively permanent earnings …, (2) without social security the model economies still produce large differences in saving rates across income groups and …