We propose a new classification of consumption goods into nondurable goods, durable goods and a new class which we call "memorable" goods. A good is memorable if a consumer can draw current utility from its past consumption experience through memory. We construct a novel consumption-savings...

This paper studies the dynamic relationship between parental labor supply, children's cognitive development and intra-household bargaining power. To do so, I construct a model that incorporates preference heterogeneity across and within households, a constrained cooperative bargaining framework...

Eligibility and benefits for anti-poverty income transfers in the U.S. are based on both the means and the household characteristics of applicants, such as their filing status, living arrangement, and marital status. In this paper we develop a dynamic structural model to study the effects of the...

We use a life cycle model of consumption and portfolio choice to study the effects of social security on the investment decisions of households for the European case. Our model is mainly based on the one developed by Cocco, Gomes, and Maenhout (2005). We extend it by unemployment risk using...

Households can rely on private savings or on public unemployment insurance to hedge against the risk of becoming unemployed. These hedging mechanisms are used differently across countries. In this paper, we use a life cycle model to study the effects of unemployment on the portfolio choice of...

SaveUSA encourages low- and moderate-income people to set aside money from their tax refund for savings by awarding a 50 percent match to successful savers. After 42 months, the program had sustained its earlier effects, increasing both the percentage of individuals with nonretirement savings...

In an environment where lawmakers are struggling to raise tax revenue, public-policy tax “expenditures” have come under heavy scrutiny. In particular, tax preferences to boost retirement savings in employer-provided retirement plans has been at the center of such discussions. A recent study...

We use a life cycle model of consumption and portfolio choice to study the effects of social security on the investment decisions of households for the European case. Our model is mainly based on the one developed by Cocco, Gomes, and Maenhout (2005). We extend it by unemployment risk using...