Using longitudinal data from PSID, we show the positive relation between labor income and the equity share of financial wealth is stronger for those who have a higher persistence in shocks to permanent labor income. The results support the hypothesis that the cross sectional variation in...

The observed hump-shaped life-cycle pattern in individuals' consumption cannot be explained by the classical consumption-savings model. We explicitly solve a model with utility of both consumption and leisure and with educational decisions affecting future wages. We show optimal consumption is...

We show that when a seller of a differentiated good offers the product allowing consumers an option to pay what they like, then all consumers will never free ride in equilibrium when their valuations of the good are positive, and, under certain conditions, all will consumers would pay. Further,...

The observed hump-shaped life-cycle pattern in individuals' consumption cannot be explained by the classical consumption-savings model. The consensus explanation is that the hump is caused by constraints and unspanned risks. However, we explicitly show that the consumption hump naturally emerges...

The empirically observed hump-shaped pattern in individuals' consumption over their life cycle cannot be explained by the classical consumption-savings model. We explicitly solve an extended model with utility depending on both consumption and leisure and with endogenous educational decisions...

The empirically observed hump-shaped pattern in individuals' consumption over their life cycle cannot be explained by the classical consumption-savings model. We explicitly solve an extended model with utility depending on both consumption and leisure and with endogenous educational decisions...

The paper reviews the literature that estimated the impact of forced displacement on host communities. A comparative analysis of the empirical models used in 59 studies and a meta-analysis of 972 results collected from these studies are the main contributions of the paper. Coverage extends to 19...

Although the number of immigrant households in the Netherlands is substantial, the labor supply choices of this group are usually neglected in empirical studies because these households are usually under-sampled. We use a stratified sample of Turkish, Surinamese/Antillean and Dutch households...

This model is the first to solve for the optimal timing of childbirth and number of children in a continuous time framework simultaneously. The model depicts how changes in wage at different stages of an individual’s life influence the timing decision of childbirth and the optimal number of...

We estimate a collective time allocation model, where Dutch, Surinamese/Antillean and Turkish households behave as if both spouses maximize a household utility function. We assume that paid labor and housework are the endogenous choice variables and furthermore consider household production....