Do Smokers Respond to Health Shocks?

Do Smokers Respond to Health Shocks?

This paper reports the first effort to use data to evaluate how new information, acquired through exogenous health shocks, affects people’s longevity expectations. We find that smokers react differently to health shocks than do those who quit smoking or never smoked. These differences, together with insights from qualitative research conducted along with the statistical analysis, suggest specif...

How Do Households Respond to Uncertainty Shocks?

Economic disruptions generally coincide with heightened uncertainty. In the United States, uncertainty increased sharply with the recent housing market crash, financial crisis, deep recession, and uneven recovery. In July 2010 congressional testimony, Federal Reserve Chairman Bernanke described conditions as “unusually uncertain.” The uncertain landscape was also cited as a factor in the slow r...

How Do Households Respond to Income Shocks

How do households respond to income shocks?∗

Commonly used consumption/saving models have radically different implications for households response to income shocks, ranging from the hands-to-mouth model, where consumption bears all the adjustment, to the complete markets model, where wealth bears all the adjustment. In this paper we use the Italian Survey of Household Income and Wealth, which is the only available micro dataset that conta...

How Do Agricultural Subsectors Respond to Productivity Shocks? Evidence from a Bayesian DSGE Model in Iran

Understanding the dynamics of productivity shocks is instrumental if we are to identify the sources of economic growth. This paper, investigates dynamic effects of positives productivity shocks to agricultural subsectors during the period from 1991-2015, by disaggregating agricultural sector in Iran into four key subsectors (crops, livestock, fishing and forestry) through an estimated DSGE mode...