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Higher education funding, welfare and inequality in equilibrium

Mellior, Gustavo - 2020

on welfare (on aggregate and at the individual level) and wealth inequality. A heterogeneous agent model in continuous … we see that there can be large gains in welfare and significant drops in inequality by moving to a system with more … student loans become excessive. While I identify large steady state welfare gains from more public sector financing, I show …

Persistent link: https://www.econbiz.de/10012664383

Incomplete-Market Equilibria Solved Recursively on anEvent Tree

Dumas, Bernard; Lyasoff, Andrew - National Centre of Competence in ResearchFinancial … - 2008

We develop a method that allows one to compute incomplete-market equilibria routinely forMarkovian equilibria (when they exist). The main difficulty to be overcome arises from the setof state variables. There are, of course, exogenous state variables driving the economy but, in anincomplete...

Persistent link: https://www.econbiz.de/10005868691

Higher education funding, welfare and inequality in equilibrium

Mellior, Gustavo - 2020 - This draft: October 20, 2020

Persistent link: https://www.econbiz.de/10012308010

Precautionary Savings and Wealth Inequality: a Global Sensitivity Analysis

Cozzi, Marco - Economics Department, Queen's University - 2011

This paper applies Canova JAE 1994 methodology to perform a thorough sensitivity analysis for the Aiyagari QJE 1994 economy. This is a calibrated GE model with incomplete markets and uninsurable income risk, designed to quantify the size of precautionary savings and the degree of wealth...

Persistent link: https://www.econbiz.de/10009144936

Risk Aversion Heterogeneity, Risky Jobs and Wealth Inequality

Cozzi, Marco - Economics Department, Queen's University - 2012

This paper considers the macroeconomic implications of a set of empirical studies finding a high degree of dispersion in preferences for risk. It develops a model with risk aversion heterogeneity, uninsurable idiosyncratic income risk, and (with or without) self-selection into risky jobs to...

Persistent link: https://www.econbiz.de/10009399703

Optimal Unemployment Insurance in GE: a RobustCalibration Approach

Cozzi, Marco - Economics Department, Queen's University - 2011

plausible parameters` conÂ…gurations, the welfare maximizing replacement rate does not decrease with the level of MH. The … households` consumption bundle, and the risk aversion have a fiÂ…rst order impact on the average welfare. The determination of …

Persistent link: https://www.econbiz.de/10009275684

Introduction to general equilibrium

Balasko, Yves; Geanakoplos, John - In: Journal of Economic Theory 147 (2012) 2, pp. 400-406

This introduces the symposium on general equilibrium.

Persistent link: https://www.econbiz.de/10010572387

Global identification from the equilibrium manifold under incomplete markets

Carvajal, Andres; Riascos, Alvaro - Econometric Society - 2004

We show that even under incomplete markets, the equilibrium manifold identifies individual demands everywhere in their domains. For this, we assume conditions of smoothness, interiority and regularity, but avoid implausible observational requirements. It is crucial that there be date-zero...

Persistent link: https://www.econbiz.de/10005702624

Derivative pricing based on local utility maximization

Kallsen, Jan - In: Finance and Stochastics 6 (2002) 1, pp. 115-140

This paper discusses a new approach to contingent claim valuation in general incomplete market models. We determine the neutral derivative price which occurs if investors maximize their local utility and if derivative demand and supply are balanced. We also introduce the sensitivity process of a...

Persistent link: https://www.econbiz.de/10005390668

Computable general equilibrium with financial markets

Kubler, Felix - In: Economic Theory 18 (2001) 1, pp. 73-96

There are a wide variety of theoretical general equilibrium models with incomplete security markets. In this paper we give a general recipe for using homotopy algorithm to compute equilibria in these models. In many models, taxes, transaction-costs or other market frictions introduce the...

Persistent link: https://www.econbiz.de/10005155368