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Anticipated Consumption and its Impact on Capital Accumulation and Growth: 'Forward-Looking' vs. 'Backward-Looking' Consumption Reference

Monteiro, Goncalo; Turnovsky, Stephen - CESifo - 2013

It has long been argued that the anticipations of some future event will impact current consumption and well-being in advance of the occurrence of the event itself. This paper introduces this idea of anticipated pleasure into the Ramsey growth model, by assuming that in addition to his own...

Persistent link: https://www.econbiz.de/10010723532

Optimal Education with Mobile Capital. An OLG Approach (new title: Optimal Public Education under Capital Mobility)

Viaene, Jean-Marie; Zilcha, Itzhak - CESifo - 2000

The paper considers a two-country model of overlapping generations economies with intergenerational transfers carried out in the form of bequest and investment in human capital. We examine in competitive equilibrium the optimal provision of education with and without capital markets integration....

Persistent link: https://www.econbiz.de/10005094431

Optimal Taxation and Constrained Inefficiency in an Infinite-Horizon Economy with Incomplete Markets

Gottardi, Piero; Kajii, Atsushi; Nakajima, Tomoyuki - CESifo - 2011

We study the dynamic Ramsey problem of finding optimal public debt and linear taxes on capital and labor income within a tractable infinite horizon model with incomplete markets. With zero public expenditure and debt, it is optimal to tax the risky labor income and subsidize capital, while a...

Persistent link: https://www.econbiz.de/10009293486

What Drives Aggregate Investment?

Bachmann, Ruediger; Zorn, Peter - CESifo - 2013

Using firm-level survey data for the West German manufacturing sector, this paper revisits the technology …-driven business cycle hypothesis for the case of aggregate investment. We construct a survey-based measure of technology shocks to … gauge their contribution to short-run investment fluctuations. We estimate an upper bound for the contribution of technology …

Persistent link: https://www.econbiz.de/10010755772

Explaining the Size Differences of Exporter Productivity Premia: Theory and Evidence

Geishecker, Ingo; Schröder, Philipp J.H.; Sörensen, Allan - CESifo - 2014

Why is it that exporter productivity premia (EPP) differ so widely in size? We take this question to the theory and to the data. We derive the sectoral EPP in a standard heterogeneous firms trade model and apply the insights from the model to 13 years of data for all Danish manufacturing firms....

Persistent link: https://www.econbiz.de/10010741313

Intergenerational Risk-Sharing and Risk-Taking of a Pension Fund

Gollier, Christian - CESifo - 2007

By using their financial reserves efficiently, pension funds can smooth shocks on asset returns, and can thus facilitate intergenerational risk-sharing. In addition to the primary benefit of improved time diversification, this form of risk allocation affords the additional benefit of allowing...

Persistent link: https://www.econbiz.de/10005406337

Risk Aversion and the Subjective Time Discount Rate: A Joint Approach

Praag, Bernard M.S. van; Booij, Adam S. - CESifo - 2003

In this paper we analyze a large sample of individual responses to six lottery questions. We derive a simultaneous estimate of risk aversion and the time preference discount rate per individual. This can be done because the consumption of a large prize is smoothed over a larger time period. It...

Persistent link: https://www.econbiz.de/10005416458

International Capital Markets, Oil Producers and the Green Paradox

Meijden, Gerard C. van der; Ploeg, Frederick Van der; … - CESifo - 2014

A rapidly rising carbon tax leads to faster extraction of fossil fuels and accelerates global warming. We analyze how general equilibrium effects operating through the international capital market affect this Green Paradox. In a two-region, two-period world with identical homothetic preferences...

Persistent link: https://www.econbiz.de/10011264741

Generous Sustainability

Gerlagh, Reyer - CESifo - 2014

I define “generous sustainability” as a combination of two conditions: neither instantaneous maximin income nor attainable maximin income should decrease over time. I provide a formal definition and study applications to an AK economy, a Ramsey economy, and a Climate Economy. Generosity is...

Persistent link: https://www.econbiz.de/10011086452

Transfers within a three Generations Family: When the Rotten Kids Turn into Altruistic Parents

Cremer, Helmuth; Roeder, Kerstin - CESifo - 2014

We study exchanges between three overlapping generations with non-dynastic altruism. The middleaged choose informal care provided to their parents and education expenditures for their children. The young enjoy their education, while the old may leave a bequest to their children. Within each...

Persistent link: https://www.econbiz.de/10010790169