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Peer effects and debt accumulation : evidence from lottery winnings

Gulbrandsen, Magnus A. H. - 2021

I estimate the effect of lottery winnings on peers' debt accumulation using administrative data from Norway. I identify neighbors of lottery winners, and estimate an average debt response of 2.1 percent of the lottery prize among households that live up to ten houses from the winner. Analyzing...

Persistent link: https://www.econbiz.de/10012664727

MPC heterogeneity and household balance sheets

Fagereng, Andreas; Holm, Martin Blomhoff; Natvik, Gisle … - 2018

We use sizeable lottery prizes in Norwegian administrative panel data to characterize households' marginal propensities to consume (MPCs). Our main contribution is to document how MPCs vary with household characteristics and prize size, and how lottery prizes are spent and saved over time. We...

Persistent link: https://www.econbiz.de/10011872933

COVID-19 and the formation of energy conservation routines : disentangling the relative importance of attention and income shocks

Löschel, Andreas; Price, Michael Keith; Razzolini, Laura; … - 2022

We examine the impact of the COVID-19 pandemic on the formation of energy conservation routines. To do so, we use data from two nationwide surveys of German households, conducted before and during the pandemic. Across the two survey waves, we document a significant increase in the likelihood...

Persistent link: https://www.econbiz.de/10013474540

Superior Information, Income Shocks and the Permanent Income Hypothesis

Pistaferri, Luigi - Centro Studi di Economia e Finanza (CSEF) - 1998

According to the permanent income hypothesis with quadratic preferences, savings should react only to transitory income shocks, but not to permanent shocks. The problem is that income shock components are not separately observable. I show how the combination of income realizations with...

Persistent link: https://www.econbiz.de/10005626725

Insurance in human capital models with limited enforcement

Krebs, Tom; Kuhn, Moritz; Wright, Mark L. J. - 2016

-free physical capital and risky human capital. Households have access to a complete set of credit and insurance contracts, but their … households less than half of human capital risk is insured and the welfare losses due to the lack of insurance range from 3 … parameters have non-negligible effects on equilibrium insurance and welfare, but the result that young households are severely …

Persistent link: https://www.econbiz.de/10011500171

Insurance in human capital models with limited enforcement

Krebs, Tom; Kuhn, Moritz; Wright, Mark L. J. - 2016

Persistent link: https://www.econbiz.de/10011476545

Occupation-level income shocks and asset returns: Their covariance and implications for portfolio choice

Davis, Steven J.; Willen, Paul S. - 2013

This paper develops and applies a simple graphical approach to portfolio selection that accounts for covariance between asset returns and an investor's labor income. Our graphical approach easily handles income shocks that are partly hedgeable, multiple risky assets, multiple risky assets, many...

Persistent link: https://www.econbiz.de/10010343354

Optimal consumption and investment with Epstein-Zin recursive utility

Kraft, Holger; Seiferling, Thomas; Seifried, Frank Thomas - 2016

We study continuous-time optimal consumption and investment with Epstein-Zin recursive preferences in incomplete markets. We develop a novel approach that rigorously constructs the solution of the associated Hamilton-Jacobi-Bellman equation by a fixed point argument and makes it possible to...

Persistent link: https://www.econbiz.de/10012064266

Annuity market imperfection, retirement and economic growth

Heijdra, Ben J.; Mierau, Jochen O. - 2009

We study the effects of an annuity market imperfection on individual agents' labour supply and retirement decisions and on the macroeconomic growth rate in an overlapping generations model with endogenous growth. We model imperfect annuities by introducing a load factor on the interest rate...

Persistent link: https://www.econbiz.de/10010266022

The tragedy of annuitization

Heijdra, Ben J.; Mierau, Jochen O.; Reijnders, Laurie S. M. - 2010

competitive life insurance market offering actuarially fair annuities. There exists a tragedy of annuitization: although full …

Persistent link: https://www.econbiz.de/10010270647