Showing 91 - 100 of 490
Expectations and riskiness of future earnings are crucial determinants of individuals’ intertemporal choices. Yet, the empirical literature lacks reliable measures of the distribution of future income. Lacking direct observability, the latter is usually estimated inferring moments of the...
Persistent link: https://www.econbiz.de/10005802094
This paper assesses the accuracy of decomposing income risk into permanent and transitory components using income and consumption data. We develop a specific approximation to the optimal consumption growth rule and use Monte Carlo evidence to show that this approximation can provide a robust...
Persistent link: https://www.econbiz.de/10005811412
Expectations are central to behaviour. Despite the existence of subjective expectations data, the standard approach is to ignore these, to hypothecate a model of behaviour and to infer expectations from realisations. In the context of income models, we reveal the informational gain obtained from...
Persistent link: https://www.econbiz.de/10005548737
Using a cross sectional farm-level data we find that farm households who face higher income uncertainty save more and accumulate more wealth. Precautionary savings is about 6 percent of the total farm household wealth. In addition to precautionary saving, and consistent with theory we found that...
Persistent link: https://www.econbiz.de/10005798603
In the context of income dynamics, we investigate whether aspects of agents’ superior information relative to the econometrician’s limited information are captured in subjective expectations data. It is natural, for instance, to assume that the econometrician cannot observe idiosyncratic...
Persistent link: https://www.econbiz.de/10005822356
Persistent link: https://www.econbiz.de/10005031725
Persistent link: https://www.econbiz.de/10005051361
We study housing and debt in a quantitative general equilibrium model. In the cross-section, the model matches the wealth distribution, the age profiles of homeownership and mortgage debt, and the frequency of housing adjustment. In the time-series, the model matches the procyclicality and...
Persistent link: https://www.econbiz.de/10008500918
The study focuses on two components of total poverty: chronic and transient poverty, and investigates their relative importance in total observed poverty, as well as the determinants of each components. We found that transient poverty accounts for a large proportion of total poverty observed in...
Persistent link: https://www.econbiz.de/10005696361
We investigate possible determinants of the increase of household debt and smaller consumption fluctuations since the 1980s in the US. We use a heterogeneous-agent model, in which labor income is risky and markets are incomplete. Consumers use durables not only as collateral for their debt but...
Persistent link: https://www.econbiz.de/10005132601