Uninsurable income risk is often cited as an explanation for empirical deviations from the Lifecycle/Permanent-Income … estimating income uncertainty essentially measure the cross-sectional variance of a subpopulation rather than the true … income uncertainty. We measure income uncertainties as the variance of income forecasting errors at different ages and over …

log consumption, assets, and labor income will be cointegrated. They conclude that this cointegrating relationship is …, assets, and labor income that are jointly consistent with an underlying budget constraint. By contrast, Lettau and Ludvigson …

, while the accounting of household income from stock holdings may be skewing saving estimates. Moreover, broad measures of …

We determine the optimal combination of taxes on money, consumption and income in transactions technology models where …, regardless of whether the government can use as alternative fiscal instruments an income tax, a consumption tax, or the two taxes …

An estimation of the life cycle/permanent income model with rational expectations that allows for uncertain future …

A calculation of the stochastic properties of consumption when income follows a fractional stochastic process, showing …