This paper aims to demonstrate that all classical uniform-profitability; Keynesian marginal-efficiency; neo-Keynesian multiplier-accelerator; and neoclassical q-theory and user-cost investment functions are merely individual "ontogenic" expressions of a general "phylogenic" investment equation.

Saving behavior at a micro level in Chile has not been analyzed in recent decades. Based on 1988 and 1996-7 Chilean microeconomic evidence (Household Budget Survey), we present an analysis of household's saving behavior. The analysis is extended to include broader definitions of saving such as...

Domestic investors hold a substantially larger proportion of their welath portfolios in domestic assets than standard portfolio theory would suggest, a phenomenon called "equity home bias". In the absence of this bias, investors would optimally diversify domestic output risk using foreign...

This paper studies the quantitative impact of eliminating capital income taxation on capital accumulation and steady-state welfare in a general equilibrium model with overlapping generations of 65-period-lived individuals who face idiosyncratic earnings risk, borrowing constraints and life span...

We assume that individuals can fully insure themselves against cross-country shocks, but not against individual-specific shocks. We consider two particular models of limited risk-sharing: domestically incomplete markets (DI) and private information-Pareto optimal (PIPO) risk-sharing. For each...

Using a human-capital-based growth model, we show the essential role of labour mobility and cross-country tax harmonization in equalizing income levels of countries that start off from different initial income positions. Knowledge spillovers cum labour mobility are the driving forces behind the...

We show theoretically that income redistribution benefits borrowing-constrained individuals more than is implied by standard relative-income and uninsurable-risk considerations. Empirically, we find in international opinion-survey data that younger and lower-income individuals express stronger...

In the context of an overlapping generations model, we show that liquidity constraints on households: (i) raise the saving rate; (ii) strengthen the effect of growth on saving; and (iii) increase the growth rate if productivity growth is endogenous. These propositions are supported by...

If some consumers are liquidity-constrained, aggregate consumption should be ‘excessively sensitive’ to credit conditions as well as to income. Moreover, the ‘excess sensitivity’ may vary over time. Using data for Canada, France, Japan, the United Kingdom and the United States, we find a...

We estimate the effect of pension reforms on households’ expectations of retirement outcomes and private wealth accumulation decisions exploiting a decade of Italian pension reforms as a source of exogenous variation in expected pension wealth. Two parameters are crucial to estimate pension...