determines whether or not a household's total wealth is increasing with age. If total wealth is increasing/decreasing with age …, the propensity to consume out of total wealth rises (declines), and the balanced growth rate declines (increases) when the …

inefficient path. When the failure of financial supervision is revealed, the household rate of time preference shifts upwards when … the expected variance of steady-state consumption increases and/or its expected value shifts downwards. …

inefficient path. When the failure of financial supervision is revealed, the household rate of time preference shifts upwards when … the expected variance of steady-state consumption increases and/or its expected value shifts downwards. …

Prolonged rapid growth, i.e. a "catching-up" process, is known to be accompanied by high rates of household saving … several decades, yet it is very much in contradiction to prevailing macroeconomic theory. This paper finds that a standard … replicate the relations between growth and saving as seen in the data. However, adding utility from relative consumption to the …

(positive) impact on households’ consumption (savings), even after we control for family income. We argue that people save to …Using the Chinese urban household survey data between 1997 and 2006, we find that income inequality has a negative … inequality can strengthen the incentives of status-seeking savings by increasing the benefit of improving status and enlarging …

This paper investigates household decisions when individual utility depends on a consumption reference level. The …, even if labor supply is exogenous. The nature of the effects depends on the consumption externality's impact on a household …, consumption externalities have no impact on steady state behavior, once labor supply is exogenous. In contrast, this paper argues …

This paper analyzes the optimal consumption behavior of a consumer who faces uninsurable labor income risk and … borrowing constraints. In particular, it provides conditions under which the decision rule for consumption is a concave function … of existing assets. The current study presents two main findings. First, it is shown that the consumption function is …

Two key components of the upcoming health reform are a reorganization of the individual health insurance market and an … income risks. We replicate the key features of the current health insurance system in the U.S. and calibrate the model using … times. It also brings significant welfare gains equivalent to almost one percent of the annual consumption. However, these …