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We study a retirement savings plan with a default contribution rate of 12% of income, which is much higher than previously studied defaults. Twenty-five percent of employees had not opted out of this default 12 months after hire; a literature review finds that the corresponding fraction in plans...
Persistent link: https://www.econbiz.de/10014337834
standard life-cycle consumption factors, even though their actual future income is uncorrelated with past experiences. Due to … the negative relationship between past experiences and consumption cannot be generated by financial constraints, income …
Persistent link: https://www.econbiz.de/10012126124
Older people often express regret about financial decisions made earlier in life that left them susceptible to old-age insecurity. Prior work has explored one outcome, saving regret, or peoples' expressed wish that they had saved more earlier in life. The present paper extends attention to five...
Persistent link: https://www.econbiz.de/10013462744
financial shocks over time, decreasing the value of consumption smoothing from insurance. We derive formulas for the value of …
Persistent link: https://www.econbiz.de/10014544674
Using the Kilts Nielsen Consumer Panel (KNCP), this paper documents new stylized facts on expenditure and income growth upon migration. First, movers' KNCP expenditures relative to non-movers' decline by 6% during a year before the move, and then increase by 9% during a year after the move....
Persistent link: https://www.econbiz.de/10013321905
entering the pandemic and those less able to earn while working from home each raised consumption more following receipt of …
Persistent link: https://www.econbiz.de/10013435158
U.S. households' debt skyrocketed between 2000 and 2007, but has since been falling. This leveraging and deleveraging cycle cannot be accounted for by the liberalization and subsequent tightening of mortgage credit standards that occurred during the period. We base this conclusion on a...
Persistent link: https://www.econbiz.de/10010333598
We use credit card data from the Federal Reserve Board's FR Y-14M reports to study the impact of the COVID-19 shock on the use and availability of consumer credit across borrower types from March through August 2020. We document an initial sharp decrease in credit card transactions and...
Persistent link: https://www.econbiz.de/10013231925
We use monthly credit card data from the Federal Reserve's Y-14M reports to study the early impact of the COVID-19 shock on the use and availability of consumer credit. First, we find that in counties severely affected by the pandemic, creditworthy borrowers reduce their credit card balances and...
Persistent link: https://www.econbiz.de/10012832690
In the USA, the share of household wealth held by the richest 1% increased from 23.5% in 1980 to 41.8% in 2012. This paper contributes to understanding the causes behind this increase. First, using an accounting decomposition, I show that more than half of the increase in the share of the top 1%...
Persistent link: https://www.econbiz.de/10012318998