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effects of tax policy or changes in the parameters of the economy. The relative role of life cycle savings increases with the … rate of growth and with the relative savings rate of life-cycle savers and capitalists. An increase in the savings rate of … workers has no effect on output per capita; life cycle savings simply crowds out inherited savings. A tax on capital (even if …
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naturally arises from unprecedented shocks, the theory of pseudo-wealth provides new understandings of both the origins of …
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, but aggregate consumption experiences significant changes. We present a theory of pseudo-wealth—individuals' perceived …
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