We calibrate a sequence of four nested models to study the dynamics of wealth accumulation. Individuals maximize a utility function whose arguments are consumption and investment. They desire to accumulate wealth for its own sake - this is not a life-cycle model. A competitive firm produces a...

This study examines intergenerational income dependency in incomes before and after public cash and in-kind transfers. We use administrative data from Denmark and estimate intergenerational dependency with a rank-rank specification. We predict in-kind transfers from childcare, schooling,...

This paper examines heterogeneous effects of uncertainty of the U.S. tax policies across income classes. We construct a multi-class general equilibrium stochastic OLG model with a stochastic process of effective tax rates. In accordance with empirical evidence, the model includes two types of...