This paper proposes an integrated framework to analyze jointly two key issues: the emergence of global imbalances and the precautionary motive for accumulating reserves. Standard models of general equilibrium would predict modest current account surpluses in the emerging markets if they face...

A dynamic stochastic model of global equilibrium, where countries outside the U.S. face higher risk than the U.S. itself, predicts current account surpluses in the RoW and U.S. deficits. With Loss Aversion, such precautionary savings can cause substantial 'global imbalances', particularly if...

There has been much recent research on the world distribution of income, but also growing recognition of the importance of other contributions to well-being, including those of household wealth. Wealth is important in providing security and opportunity, particularly in poorer countries that lack...

Interest in the emergence of a global middle class has resulted in a number of attempts to identify and enumerate who belongs to it . Current research provides wildly different estimates about the size and evolution of the global middle class because of a lack of consensus on appropriate...

I structurally estimate an incomplete markets lifecycle model with endogenous labor supply, using data on the joint distribution of wages, hours and consumption. The model is successful at matching the evolution of both the first and second moments of the data over the lifecycle. The key...

This paper investigates the channels through which the middle class may matter for consumption growth and development. Determinants of the size and the growth of the middle class are also examined. Using several different middle class measures and a panel of 72 developing countries spanning the...

Interest in the emergence of a global middle class has resulted in a number of attempts to identify and enumerate who belongs to it. Current research provides wildly different estimates about the size and evolution of the global middle class because of a lack of consensus on appropriate...

The global financial crisis of the past decade has shaken the research and policy worlds out of their belief that housing markets are mostly benign and immaterial for understanding economic cycles. Instead, a growing consensus recognizes the central role that housing plays in shaping economic...

This paper compares changes in relative and absolute wealth concentrations to establish if both processes have followed similar trajectories. The findings indicate that while the level of relative wealth concentration has increased recently, it is not extraordinarily high in an historical...

This paper explores the role of social vouchers as a tool for social inclusion and local development. It presents a typology of vouchers and their objectives, governing institutional and regulatory frameworks, use by national and local governments, and the social economy (Section1). It analyses...