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Savings for retirement under liquidity constraints: A note

Corsini, Lorenzo; Spataro, Luca - In: Economics Letters 118 (2013) 2, pp. 258-261

Pension systems often entail some compulsory saving over which individuals have some degree of choice in terms of the pension plan in which to invest. We analyse whether the choice between alternative plans is affected by the presence of liquidity constraints during working life and we prove...

Persistent link: https://www.econbiz.de/10010608075

The individual life-cycle, annuity market imperfections and economic growth

Heijdra, Ben J.; Mierau, Jochen O. - In: Journal of Economic Dynamics and Control 36 (2012) 6, pp. 876-890

We study the effects of an annuity market imperfection on individual agents' life-cycle decisions and on the macroeconomic growth rate in an overlapping generations model with single-sector endogenous growth. Our model features both age-dependent mortality and labour productivity. We model...

Persistent link: https://www.econbiz.de/10010871052

Adverse Selection in Private Annuity Markets and the Role of Mandatory Social Annuitization

Heijdra, Ben J.; Reijnders, Laurie S.M - 2012

We study the effects on the macroeconomic equilibrium, the wealth distribution, and welfare of adverse selection in private annuity markets in a closed economy inhabited by overlapping generations of heterogeneous agents who are distinguished by their health status. If an agent’s health type...

Persistent link: https://www.econbiz.de/10014170647

Welfare Costs of Reclassification Risk in the Health Insurance Market

Pashchenko, Svetlana; Porapakkarm, Ponpoje - 2015

We assess the quantitative importance of reclassification risk in the US health insurance market. Reclassification risk … arises because the health conditions of individuals evolve over time, while a typical health insurance contract only lasts … for one year. Thus, a change in the health status can lead to a significant change in the health insurance premium. We …

Persistent link: https://www.econbiz.de/10014176459

Heterogeneous Life-Cycle Profiles, Income Risk and Consumption Inequality

Primiceri, Giorgio E.; van Rens, Thijs - 2007

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of …-cycle changes, transitory and permanent shocks and estimate the contribution of each to total inequality. Our model fits the joint … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

Persistent link: https://www.econbiz.de/10014225377

Cross-Subsidization in Employer-Based Health Insurance and the Effects of Tax Subsidy Reform

Pashchenko, Svetlana; Porapakkarm, Ponpoje - 2016

A major source of insurance coverage for non-elderly adults in the US is employer-based health insurance market. Every … pool, and ii) employer-based insurance premiums become age-adjusted. To improve welfare outcome of this reform the tax …

Persistent link: https://www.econbiz.de/10014155967

The Ideal Inflation Indexed Bond and Irving Fisher's Impatience Theory of Interest in an Overlapping Generations World

Geanakoplos, John - 2003

Irving Fisher long advocated inflation indexed bonds. I prove in the context of a multicommodity CAPM world that the best welfare improving bond pays the minimum money needed to achieve the same utility, and not the minimum needed to buy an ideal commodity bundle. Irving Fisher also developed...

Persistent link: https://www.econbiz.de/10014076190

Competitive Equilibria of Economies with a Continuum of Consumers and Aggregate Shocks

Miao, Jianjun - 2003

This paper studies competitive equilibria of a production economy with aggregate productivity shocks and with a continuum of consumers subject to borrowing constraints and individual labor endowment shocks. The dynamic economy is described in terms of sequences of aggregate distributions. The...

Persistent link: https://www.econbiz.de/10014029766

Inequality Over the Business Cycle : Estimating Income Risk Using Micro-Data on Consumption

Primiceri, Giorgio E.; van Rens, Thijs - 2006

We use CEX repeated cross-section data on consumption and income, to evaluate the nature of increased income inequality … and aggregate components, and estimate the contribution of each component to total inequality. The model we use is a … that taking risk sharing into account is important for the model fit; that the increase in inequality in the 1980s was …

Persistent link: https://www.econbiz.de/10014113227

Migration and Informal Insurance

Meghir, Costas; Mobarak, Ahmed Mushfiq; Mommaerts, Corina; … - 2020

Do new migration opportunities for rural households change the nature and extent of informal risk sharing? We experimentally document that randomly offering poor rural households subsidies to migrate leads to a 40% improvement in risk sharing in their villages. Our model of endogenous migration...

Persistent link: https://www.econbiz.de/10014094175