In this paper I use national accounts data from nineteen OECD countries to test the existence and measure the importance of liquidity constraints. This is accomplished by nesting a fraction of current income consumers in the permanent income model. The generalized method of moments (GMM) used in...

In this paper, I use an approximate solution to model the optimal consumption when the representative consumer faces labor income uncertainty. This approximate consumption function is based on Zeldes' (1989) numerical solution to the optimal consumption problem with CRRA utility and stochastic...

Based on several stylized facts, this paper develops a macroeconomic model for Hong Kong that emphasizes its interdependence with China and the United States. Important macroeconomic variables such as the price level and nominal wage rate, as well as capital flow, are analyzed first in a static...

Based on several stylized facts, this paper develops a macroeconomic model for Hong Kong that emphasizes its interdependence with China and the United States. Important macroeconomic variables such as the price level and nominal wage rate, as well as capital flow, are analyzed first in a static...