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We calibrate a sequence of four nested models to study the dynamics of wealth accumulation. Individuals maximize a utility function whose arguments are consumption and investment. They desire to accumulate wealth for its own sake - this is not a life-cycle model. A competitive firm produces a...
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(positive) impact on households' consumption (savings), even after we control for family income. We argue that people save to … inequality can strengthen the incentives of status-seeking savings by increasing the benefit of improving status and enlarging …
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In the presence of means tested basic income for old age, households will tend to reduce precautionary savings to an … representative agent framework with two income types, compulsory savings are found to be Pareto-improving up to a point. Beyond that …
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