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Cao, Dan Vu; L'Huillier, Jean-Paul; Yoo, Donghoon - 2022

A literature debates the explanations for the cyclical properties of emerging markets using either trend shocks (Aguiar and Gopinath 2007) or financial frictions (Neumeyer and Perri 2004; Garcia-Cicco, Pancrazi, and Uribe 2010). We state a formal proposition that makes explicit the parametric...

Persistent link: https://www.econbiz.de/10013252973

Precautionary Saving and Partially Observed Income

Wang, Neng - 2011

precautionary saving due to estimation risk, the error associated with estimating individual components of income. This additional … precautionary saving is higher, when estimation risk is greater. Compared with a precautionary agent who is otherwise identical, but … ignores estimation risk, the rational agent consumes less at the beginning of his life, but consumes more later, because of …

Persistent link: https://www.econbiz.de/10012757190

Does the selfish life-cycle model apply in the case of Japan?

Horioka, Charles - 2020

In this paper, we first provide a brief exposition of the simplest version of the selfish life cycle model or hypothesis, which is undoubtedly the most widely used theoretical model of household behavior in economics, and then survey the literature on household saving behavior in Japan (with...

Persistent link: https://www.econbiz.de/10012195738

Credit card utilization and consumption over the life cycle and business cycle

Fulford, Scott L.; Schuh, Scott - 2017 - This version: September 2017

The revolving credit available to consumers changes substantially over the business cycle, life cycle, and for individuals. We show that debt changes at the same time as credit, so credit utilization is remarkably stable. From ages 20-40, for example, credit card limits grow by more than 700...

Persistent link: https://www.econbiz.de/10011770619

Current account dynamics under information rigidity and imperfect capital mobility

Shibata, Akihisa; Shintani, Mototsugu; Tsuruga, Takayuki - 2018 - This draft: July 2018

The current account in developed countries is highly persistent and volatile in comparison to output growth. The standard intertemporal current account model with rational expectations (RE) fails to account for the observed current account dynamics together with persistent changes in...

Persistent link: https://www.econbiz.de/10011868970

The Simplest Possible Presentation of the Life Cycle-Permanent Income Hypothesis and Ricardian Equivalence

Stein, Sheldon H. - 2011

school arithmetic. Since the simple Keynesian absolute income theory of consumption requires nothing more than elementary …

Persistent link: https://www.econbiz.de/10014177768

Revisiting the Effect of Household Size on Consumption Over the Life-Cycle

Bick, Alexander; Choi, Sekyu - 2014

Although the link between household size and consumption has strong empirical support, there is no consistent way in which demographics are dealt with in standard life-cycle models. We study the relationship between the predictions of the Single Agent model (the standard in the literature)...

Persistent link: https://www.econbiz.de/10014184792

The Age-Wealth Profile and the Life-Cycle Hypothesis : A Cohort Analysis with a Time Series of Cross-Sections of Italian Households

Jappelli, Tullio - 2008

In this paper I estimate the age-wealth profile under two different identification assumptions about age, cohort and time effects. According to the life-cycle model, the two sets of assumptions should yield similar age-wealth profiles. Using the 1984-1993 Italian Survey of Household Income and...

Persistent link: https://www.econbiz.de/10014197284

Habit Formation and the Theory of Addiction

Messinis, George - 2009

persistence hypothesis, and (ii) to review the theory of addiction with a focus on issues of relevance to the theory of …

Persistent link: https://www.econbiz.de/10014202818

Life-Cycle Consumption Under Social Interactions

Binder, Michael; Pesaran, M. Hashem - 2000

In this paper we examine how social interactions affect consumption decisions at various levels of aggregation in a life-cycle economy made up of peer groups. For this purpose, we consider two analytically solvable life-cycle models, one under certainty equivalent behavior and one under...

Persistent link: https://www.econbiz.de/10014159030