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The Reservation Wage under CARA and Limited Borrowing

Bauer, Christian - 2009

consumption as well as risk-aversion on the reservation wage by using a system of ordinary differential equations. …

Persistent link: https://www.econbiz.de/10010427557

Differentiability of the Efficient Frontier when Commitment to Risk Sharing is Limited

Koeppl, Thorsten - 2004

This paper shows that the value function describing efficient risk sharing with limited commitment is not necessarily …

Persistent link: https://www.econbiz.de/10011940667

Self-employment and labor market risks

Audoly, Richard - 2024

I study the labor market risks associated with being self-employed. I document that the self-employed are subject to larger earnings fluctuations than employees and that they frequently transition into unemployment. Given the self-employed are not eligible to unemployment insurance, I analyze...

Persistent link: https://www.econbiz.de/10014581780

Intergenerational Sharing of Unhedgeable Inflation Risk

Chen, Damiaan H.J.; Beetsma, Roel M.W.J.; van … - 2022

market instruments. Using intergenerational risk sharing arrangements, risks can be allocated better across the various …

Persistent link: https://www.econbiz.de/10014321763

Asset pricing under rational learning about rare disasters

Koulovatianos, Christos; Wieland, Volker - 2011

This paper proposes a new approach for modeling investor fear after rare disasters. The key element is to take into account that investors’ information about fundamentals driving rare downward jumps in the dividend process is not perfect. Bayesian learning implies that beliefs about the...

Persistent link: https://www.econbiz.de/10010368587

Capital risk, fiscal policy, and the distribution of wealth

Modena, Andrea; Regis, Luca - In: Mathematics and Financial Economics 18 (2024) 2, pp. 379-411

risk-less government bonds, facing borrowing constraints, uninsurable labour endowment and capital depreciation risk. We … derive a numerical approximation of the model’s equilibrium and compare it with a benchmark economy with no capital risk …. Unlike labour endowment risk, capital risk reduces aggregate capital accumulation and wages and generates a positive risk …

Persistent link: https://www.econbiz.de/10015373518

A further note on a new class of solutions to dynamic programming problems arising in economic growth

Antony, Jürgen; Maußner, Alfred - 2008

This note extends the finding of Benhabib and Rusticchini (1994) who provide a class of SDGE models, whose solution is characterized by a constant savings rate. We show that this class of models may be interpreted as a standard representative agent SDGE model with costly adjustment of capital...

Persistent link: https://www.econbiz.de/10010275810

Net worth and housing equity in retirement

Sinai, Todd; Souleles, Nicholas S. - 2007

This paper documents the trends in the life-cycle profiles of net worth and housing equity between 1983 and 2004. The net worth of older households significantly increased during the housing boom of recent years. However, net worth grew by more than housing equity, in part because other assets...

Persistent link: https://www.econbiz.de/10010298383

Financial literacy and suboptimal financial decisions at older ages

Fong, Joelle H.; Koh, Benedict SK.; Mitchell, Olivia S.; … - 2019

Over the life-cycle, wealth holdings tend to be highest in the early part of retirement. The quality of financial … and inflation, but fewer know about risk diversification. We provide evidence of a statistically significant positive …

Persistent link: https://www.econbiz.de/10012113998

Long-Run Saving Dynamics: Evidence from Unexpected Inheritances

Druedahl, Jeppe; Martinello, Alessandro - 2017

Long-run saving dynamics are a crucial component of consumption-saving behavior. This paper makes two contributions to the consumption literature. First, we exploit inheritance episodes to provide novel causal evidence on the long-run effects of a large financial windfall on saving behavior. For...

Persistent link: https://www.econbiz.de/10013208751