We extend the canonical income process with persistent and transitory risk to shock distributions with left …-skewness and excess kurtosis, to which we refer as higher-order risk. We estimate our extended income process by GMM for household …

Using German panel data, we assess the causal effect of job loss, and thus of an extensive income shock, on risk …

In questions inserted into the 2008 module of the German-Socio Economic Panel we ask subjects to report their income … data we are able to study how important income comparisons are to subjective well-being, and which comparisons are … relatively more important. We find substantial gender differences, with income comparisons being much better predictors of …

equivalent household income. Permanent and transitory variances of male income over the period 1984-2008 are estimated for Old … German Laender in order to determine their importance to income dynamics. To uncover the role of the welfare state in … smoothening earnings shocks we compute different income concepts reaching from gross earnings to net equivalent household income …

endogenous achievement trait ("income"). Individuals with lower cognitive ability are predicted to invest more value on …

We reexamine the claim that the effect of income on subjective well-being suffers from a systematic downward bias if … one ignores that higher income is typically associated with more work effort. We analyze this claim using German panel … do not find evidence that leaving working hours out of the analysis leads to an underestimation of the income effect …

disposable income and a gain of leisure time - and the psychological (and cultural) notion of the lonely, sad empty nester. This …