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We use an agent-based stock-flow consistent model of a closed economy without technological change that considers different classes of households, status consumption and a Minskyan banking sector to analyze the relationship between rising saving rates, the accumulation and distribution of...
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fluctuations in household wealth have driven major swings in economic activity. This paper considers so-called wealth effects - the … impact of changes in wealth on household consumption and the overall macroeconomy. There is an extensive existing literature …
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two channels in driving aggre- gate consumption fluctuations in the US: (i) precautionary savings against un- employment …, indicating an MPC puzzle. This is because the likelihood-based estimation favors a low degree of nominal rigidity and responsive …
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Using micro-level data, we document a systematic, income-related component in household income forecast errors. We show … persistence of their income process. We then investigate the implications of these distortions on consumption and savings behavior …
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