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Alvarez-Cuadrado, Francisco; el Attar, Mayssun - 2012

Over the last three decades, average income for the bottom half of the US distribution increased by 8% while their average saving rate decreased by eight percentage points. Over the same period the US experienced a substantial increase in inequality and a continuous decrease in the aggregate...

Persistent link: https://www.econbiz.de/10010291404

Consumption Smoothing and the Structure of Labor and Credit Markets

Bertola, Giuseppe; Koeniger, Winfried - 2004

Smoother labor incomes alleviate credit constraints by reducing workers' desire to borrow, and prospects of upward income mobility have smaller beneficial effects for currently poor workers when borrowing constraints are binding. These simple theoretical insights are consistent with the...

Persistent link: https://www.econbiz.de/10010261817

Happiness and the persistence of income shocks

Bayer, Christian; Juessen, Falko - 2012

novel two-step estimation procedure that allows applying instrumental variable regressions with ordinal observable data. As … suggested by the theory of incomplete markets, we differentiate between the effects of persistent and transitory income shocks …. In line with this theory, we find that persistent shocks have a significant impact on happiness while transitory shocks …

Persistent link: https://www.econbiz.de/10010283993

The Dynamics of Market Insurance, Insurable Assets, and Wealth Accumulation

Koeniger, Winfried - 2002

We analyze dynamic interactions between market insurance, the stock of insurable assets and liquid wealth accumulation in a model with non-durable and durable consumption. The stock of the durable is exposed to risk against which households can insure. Since the model does not have a closed form...

Persistent link: https://www.econbiz.de/10010262542

Public and private insurance with costly transactions

Bertola, Giuseppe; Koeniger, Winfried - 2010

We characterize how public insurance schemes are constrained by hidden financial transactions. When non-exclusive private insurance entails increasing unit transaction costs, public transfers are only partly offset by hidden private transactions, and can influence consumption allocation. We show...

Persistent link: https://www.econbiz.de/10010274703

"Should I Pay for You or for Myself"? The Optimal Level and Composition of Retirement Benefit Systems

van Praag, Bernard M. S.; Cardoso, Pedro - 2001

Feldstein [1985] posed the questions of what would be the optimal level of retirement benefit, and what would be the optimal mix between the pay-as-you-go system and the funded pension system under the assumption of an exogenous interest rate. We reconsider the problem with the addition of a...

Persistent link: https://www.econbiz.de/10010276956

Population policies, demographic structural changes, and the Chinese household saving puzzle

Ge, Suqin; Yang, Dennis Tao; Zhang, Junsen - 2012

Using combined data from population censuses and Urban Household Surveys, we study the effects of demographic structural changes on the rise in household saving in China. Variations in fines across provinces on unauthorized births under the one-child policy and in cohort-specific fertility...

Persistent link: https://www.econbiz.de/10010291447

Heterogeneous Life-Cycle Profiles, Income Riskand Consumption Inequality

Primiceri, Giorgio E.; Rens, Thijs van - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007

Was the increase in income inequality in the US due to permanent shocks or merely to anincrease in the variance of transitory shocks? The implications for consumption and welfaredepend crucially on the answer to this question. We use CEX repeated cross-section data onconsumption and income to...

Persistent link: https://www.econbiz.de/10005861079

Family Finances and Debt Overhang: Evolving Consumption Patterns of Spanish Households

Sala, Hector; Trivín, Pedro - 2022

This paper studies the direct impact of households' debt on consumption over the business cycle. We use household-level panel data for Spain, and focus on a interesting period of analysis, 2002-2017, characterized by large variations in leverage, consumption, and asset prices. We find that debt...

Persistent link: https://www.econbiz.de/10013351761

Regional Consumption Responses and the Aggregate Fiscal Multiplier

Dupor, Bill; Karabarbounis, Marios; Kudlyak, Marianna; … - 2022

We use regional variation in the American Recovery and Reinvestment Act (2009-2012) to analyze the effect of government spending on consumer spending. Our consumption data come from household-level retail purchases in the Nielsen scanner data and auto purchases from Equifax credit balances. We...

Persistent link: https://www.econbiz.de/10013351794