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generate enough concentration at the upper tail of the wealth distribution. …
Persistent link: https://www.econbiz.de/10012144204
This paper investigates empirically why Japan’s household savings rate fell in the 1990s. We constructed an economic model consisting of two types of household: unconstrained life-cycle households and liquidity-constrained households. Unconstrained households generally save, but...
Persistent link: https://www.econbiz.de/10002719933
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...
Persistent link: https://www.econbiz.de/10013124270
A growing literature explores reasons for rising wealth inequality, but disregards the role of pension systems despite … decrease in the former but increase under the latter system. Unlike most nations, Denmark has seen a decline in wealth …
Persistent link: https://www.econbiz.de/10013161541
Differences in individual wealth holdings are widely viewed as a driving force of economic inequality. However, as this … in cross-sections, which eliminates transitory wealth inequality due to age, yet preserves inequality arising from other … yield erroneous wealth inequality rankings of countries …
Persistent link: https://www.econbiz.de/10013159881
Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use CEX repeated cross-section data on consumption and income to...
Persistent link: https://www.econbiz.de/10012733915
save less (more) and also invest a higher (lower) share of their financial wealth in the stock market. Negative skewness in … evidence from the Flow of Funds. Counterfactual simulations using the calibrated model generate wealth inequality dynamics …
Persistent link: https://www.econbiz.de/10012898145
argue that current uncapped exemption may lead to distortionary incentives for very high levels of housing wealth to be … constraints, and wealth inequality, that is able to match a number of key features in the Australian economy. We find that … households at the top of the wealth distribution experiencing a large welfare loss, however the majority of the population would …
Persistent link: https://www.econbiz.de/10012940527
We investigate the effects of assuming a fully permanent income shock in a standard buffer-stock consumption model, when the true income process is only highly persistent. This assumption is computationally very advantageous, and thus often used, but might be problematic due to the implied...
Persistent link: https://www.econbiz.de/10012989455
There are large differences in the amount of wealth held by different households in the US within and between age … future productivity and reduce their turnover rate. Therefore, households end up very unequal with respect to wealth and … cost preventing them to become entrepreneurs. Business experience emerges as an important complementary driver for wealth …
Persistent link: https://www.econbiz.de/10013218234