-
作者：Haan, Peter; Kemptner, Daniel; Prowse, Victoria; Schaller, Maximilian
作者单位：Leibniz Association; DIW Berlin - Deutsches Institut fur Wirtschaftsforschung; Purdue University System; Purdue University
摘要：Individuals vary considerably in how much they earn during their lifetimes. This study examines the role of the tax-and-transfer system in mitigating such inequalities, which could otherwise lead to disparities in living standards. Utilizing a life-cycle model, we determine that the tax-and-transfer system offsets 45% of lifetime earnings inequality attributed to differences in productive abilities and education. Additionally, the system insures against 47% of lifetime earnings risk. Implement...
-
作者：Lazzati, Natalia; Quah, John K. -H.; Shirai, Koji
作者单位：University of California System; University of California Santa Cruz; National University of Singapore; Kwansei Gakuin University
摘要：We develop a nonparametric and ordinal approach for testing pure strategy Nash equilibrium play in games with monotone best responses, such as those with strategic complements/substitutes. The approach makes minimal assumptions on unobserved heterogeneity, requires no parametric assumptions on payoff functions, and no restriction on equilibrium selection from multiple equilibria. The approach can also be extended in order to make inferences and predictions. Both model-testing and inference can...
-
作者：Chen, Xiaoshan; Lazarakis, Spyridon; Varthalitis, Petros
作者单位：Durham University; Lancaster University; Athens University of Economics & Business
摘要：This paper develops a world economy HANK model for the Euro Area (EA) Core and Periphery, which captures key features of EA cross- and within-country heterogeneity, to study debt target reforms. We show that fiscal consolidation under the current EA institutional arrangements is quite costly across and within countries, particularly affecting households in the Periphery. Reforming the EA debt targets closer to their historical values can significantly mitigate these welfare losses and make fis...
-
作者：Wachter, Jessica A.; Zhu, Yicheng
作者单位：University of Pennsylvania
摘要：Financial crises appear to have long-lasting effects, even after the crisis itself has passed. This paper offers a simple explanation based on Bayesian learning from rare events. Agents face a latent and time-varying probability of economic disaster. When a disaster occurs, learning results in greater effects on asset prices because agents update their probability of future disasters. Moreover, agents' belief that the disaster risk is high can rationally persist for years, even when it is in f...
-
作者：Caetano, Gregorio; Maheshri, Vikram
作者单位：University System of Georgia; University of Georgia; University of Houston System; University of Houston
摘要：We incorporate the endogenous feedback loop at the core of the seminal Schelling (1969) model of segregation into a dynamic model of neighborhood choice and use it to study the forces that shaped racial and income segregation in the San Francisco Bay area from 1990 to 2004. Such an analysis requires causal identification of households' responses to the socioeconomic composition of their neighbors. We achieve this with novel instrumental variables that can be rationalized with a dynamic choice ...
-
作者：Beare, Brendan K.; Franchi, Massimo; Howlett, Phil
作者单位：University of Sydney; Sapienza University Rome; Adelaide University; University of South Australia
摘要：We provide a complete description of the set of all solutions to a vector autoregressive law of motion. Every solution is shown to be the sum of three components, each corresponding to a directed flow of time. One component flows forward from the arbitrarily distant past, one flows backward from the arbitrarily distant future, and one flows outward from time zero. The three components are obtained by applying three complementary spectral projections to the solution, these corresponding to a se...
-
作者：Hwang, Yujung
作者单位：Johns Hopkins University
摘要：Traditional dynamic discrete choice model-Conditional Choice Probability estimator (DDCM-CCP) literature considered identification using the likelihood of longitudinal choice only. However, such an approach has a limitation in identifying flexible dynamics for latent state due to the discrete and typically small-dimensional nature of choice. This paper extends this literature to utilize imperfect measurements, called proxies, for a latent discrete state. I first show that proxies improve ident...
-
作者：Blevins, Jason R.
作者单位：University System of Ohio; Ohio State University
摘要：This paper considers the theoretical, computational, and econometric properties of continuous-time dynamic discrete choice games with stochastically sequential moves, introduced by Arcidiacono, Bayer, Blevins, and Ellickson (2016). We consider identification of the rate of move arrivals, which was assumed to be known in previous work, as well as a generalized version with heterogeneous move arrival rates. We reestablish conditions for existence of a Markov perfect equilibrium in the generalize...
-
作者：Balke, Kasper Kragh; Karlman, Markus; Kinnerud, Karin
作者单位：Norwegian School of Economics (NHH); BI Norwegian Business School
摘要：This paper considers optimal taxation of housing capital. To this end, we employ a life-cycle model calibrated to the U.S. economy, where asset holdings and labor productivity vary across households, and tax reforms lead to changes in house and rental prices, interest rates, and wages. We find that the optimal property tax in the long run is considerably higher than today, partly due to the relatively inelastic demand and supply of housing. A higher property tax also reduces house prices and c...
-
作者：Mikusheva, Anna; Solvsten, Mikkel
作者单位：Massachusetts Institute of Technology (MIT); Aarhus University
摘要：This paper studies linear time-series regressions with many regressors. Weak exogeneity is the most used identifying assumption in time series. Weak exogeneity requires the structural error to have zero conditional expectation given present and past regressor values, allowing errors to correlate with future regressor realizations. We show that weak exogeneity in time-series regressions with many controls may produce substantial biases and render the least squares (OLS) estimator inconsistent. ...
