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Asset Pricing in the International Economy

Barrionuevo, José M. - International Monetary Fund (IMF) - 1993

This paper presents a statistical and economic interpretation of the low and often economically implausible risk aversion estimates obtained for fixed income assets throughout the finance literature. For a statistical interpretation, Monte Carlo simulations are used to demonstrate that...

Persistent link: https://www.econbiz.de/10005826001

Life-Cycles, Dynasties, Savings; Implications for Closed and Small, Open Economies

Faruqee, Hamid; Laxton, Douglas - International Monetary Fund (IMF) - 2000

This paper examines the macroeconomic implications of life-cycle and dynastic saving behavior for closed and small, open economies. Using an extended version of Blanchard’s overlapping agents model, the analytical framework nests these two competing views, treating agents as either dynastic...

Persistent link: https://www.econbiz.de/10005826319

Do the Rich Save More in Canada?

Alan, Sule; Atalay, Kadir; Crossley, Thomas F. - Department of Economics, McMaster University - 2006

This paper is an attempt to answer the long standing question of whether households with higher lifetime income save a larger fraction of their income. The major difficulty in empirically assessing the relationship between lifetime incomes and saving rates is to construct a credible proxy for...

Persistent link: https://www.econbiz.de/10005763306

Private Sector Consumption Behavior and Non-Keynesian Effects of Fiscal Policy

Bhattacharya, Rina - International Monetary Fund (IMF) - 1999

This paper explores the hypothesis that the propensity to consume out of income is not constant but varies, perhaps in a nonlinear fashion, with fiscal variables. It examines whether there is any empirical evidence to support the hypothesis that households move from non-Ricardian to Ricardian...

Persistent link: https://www.econbiz.de/10005769068

Fundamental Determinants of the Effects of Fiscal Policy

Kumar, Manmohan S.; Botman, Dennis P. J. - International Monetary Fund (IMF) - 2006

We explore the underlying determinants of the macroeconomic effects of fiscal policy and tax and social security reform using the Global Fiscal Model (GFM). We show that the planning horizon of consumers, access to financial markets, and the elasticity of labor supply, as well as the...

Persistent link: https://www.econbiz.de/10005769145

The marginal propensity to spend on adult children

Altonji, Joseph; Villanueva, Ernesto - Department of Economics and Business, Universitat … - 2003

the form of inter vivos transfers and bequests. We infer bequests from the stock of wealth late in life. We use mortality … rates and age specific estimates of the response of transfers and wealth to permanent income to compute the expected present … behavior in order to assess the likely importance of intended bequests for the wealth/income relationship. …

Persistent link: https://www.econbiz.de/10005772218

Rasyonel Beklentiler-Yasam Boyu Surekli Gelir Hipotezinin Testi

SIVRI, Ugur; ERYUZLU, Hakan - In: Istanbul University Econometrics and Statistics e-Journal 11 (2010) 1, pp. 90-99

Consumption expenditures is one of the most important economic variables. So there are too many hypotheses about form … of consumption expenditures in macroeconomics. Among them Hall’s model suggests that consumption expenditures follow …-drink expenditures, semi durable and nondurable consumption goods expenditures and service expenditures which are subitems of private …

Persistent link: https://www.econbiz.de/10008505307

Permanent Income Inequality: Australia, Britain, Germany, and the United States Compared

Leigh, Andrew - Research School of Economics, College of Business and … - 2009

A common critique of most measures of income inequality, which are based on a single year's income, is that they fail to take account of income mobility. If income fluctuations are large, and individuals can smooth consumption, then high inequality and high mobility may be no worse than low...

Persistent link: https://www.econbiz.de/10008511760

On the measurement of long-term income inequality and income mobility

Aaberge, Rolf; Mogstad, Magne - Society for the Study of Economic Inequality - ECINEQ - 2010

This paper proposes a two-step aggregation method for measuring long-term income inequality and income mobility, where mobility is defined as an equalizer of long-term income. The first step consists of aggregating the income stream of each individual into a measure of permanent income, which...

Persistent link: https://www.econbiz.de/10008512110

Measuring long-term inequality of opportunity

Aaberge, Rolf; Mogstad, Magne; Peragine, Vito - Society for the Study of Economic Inequality - ECINEQ - 2010

In this paper, we introduce and apply a general framework for evaluating long-term income distributions according to the Equality of Opportunity principle. Our framework allows for both an exante and an ex-post approach to EOp. Our ex-post approach relies on a permanent income measure defined as...

Persistent link: https://www.econbiz.de/10008512115