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utility. We empirically find that asset returns correlate negatively with many individuals' low-quantile consumption growth …. This new model explains both the low covariance between consumption growth and stock returns and a high equity premium …
Persistent link: https://www.econbiz.de/10013244255
Persistent link: https://www.econbiz.de/10010223100
We analyze the consequences of habit formation for income levels and long-term growth in an overlapping generations … habits yield permanent effects on output levels due to transitional effects on growth rates, capital profitability and speed …-like) equilibrium in which habits increase growth rates and resource depletion even in the long run, sustainability conditions are less …
Persistent link: https://www.econbiz.de/10008729539
an AK technology, a model of balanced growth. In this context we investigate status preference, demographic, and pension … policy shocks. We find that a higher degree of KUJ lowers economic growth, while, in contrast, a decrease in the fertility … that the growth rate is higher under PAYG. We also consider the implications of an increase in the retirement date under …
Persistent link: https://www.econbiz.de/10009735354
Persistent link: https://www.econbiz.de/10003777617
marginal propensity to consume because the short run covariance between income growth and consumption growth increases when …
Persistent link: https://www.econbiz.de/10012928282
This paper studies the spending response to news about a dividend tax reform to estimate the elasticity of intertemporal substitution (EIS). The Norwegian dividend tax reform was proposed in 2003, announced in 2004, and implemented in 2006, raising the dividend tax rate by 28 percentage points....
Persistent link: https://www.econbiz.de/10015271791
The Frisch elasticity of labor supply can be estimated by regressing hours worked on the hourly wage rate, controlling for consumption of the individual worker. However, most household panel surveys contain consumption information only at the household level. We show that proxying individual...
Persistent link: https://www.econbiz.de/10012493758
The revolving credit available to consumers changes substantially over the business cycle, life cycle, and for individuals. We show that debt changes at the same time as credit, so credit utilization is remarkably stable. From ages 20–40, for example, credit card limits grow by more than 700...
Persistent link: https://www.econbiz.de/10012931109
In this paper, we analyze the saving motives of European households using micro-data from the Household Finance and Consumption Survey (HFCS), which is conducted by the European Central Bank. We find that the rank ordering of saving motives differs greatly depending on what criterion is used to...
Persistent link: https://www.econbiz.de/10015047840