This paper is about the determination and prediction of permanent income in household data. Standard static welfare indicators (e.g. per capita expenditure and income) are imperfect in this respect as they typically contain a high transitory component. The framework we employ is consistent with...

The credit channel of monetary policy has both cross-sectional and timeseries implications for the reaction of the economy to monetary shocks. This paper focuses on the more rarely investigated time-series aspect and shows that the economy has varying sensitivity to monetary shocks over time. By...

In this paper, we consider a two-country model based on Svensson (1989) in order to analyze how fiscal harmonization impacts on economic growth and welfare through its effects on agents portfolio decisions in an uncertain world. We derive the conditions under which fiscal harmonization proves to...

Because the permanent incomes of parents and children are typically unobservable, the estimation of the intergenerational correlation of incomes is usually carried out via averaging methods or instrumentation. In this paper we take the permanent income of the parent family to be unobserved, but...

Combining, as it does, three fundamental propositions ( uncovered interest rate parity, relative PPP, international equalization of the real return on capital), the double equality is found to hold in the long run with a striking degree of precision and reability when tested by means of a sample...

Empirically, growth rates are negatively correlated with birth rates; they are also correlated with production risk. We argue that these stylized facts are related, and arise jointly from the decision of how many children to have in a risky economic environment.