This paper employs a large-scale overlapping generation model quantifying that demographics account for decrease in the natural real interest rate of about 1.4 percentage points euro area compared with average 1980s to 2030 (roughly at its trough), under baseline calibration. Two channels prevail providing downward impact: increasing scarcity effective labor input and growing willingness indivi...

Abstract This paper examines how wealth and income inequality dynamics are related to fluctuations in the functional distribution over business cycle. In a panel estimation for OECD countries between 1970 2016, although is, on average countercyclical significantly associated with capital share, one-third of display pro- or noncyclical relationship. To analyze observed pattern, we incorporate di...

Abstract We recast the Aiyagari–Bewley–Huggett model of income and wealth distribution in continuous time. This workhorse model—as well as heterogeneous agent models more generally—then boils down to a system partial differential equations, fact we take advantage make two types contributions. First, number new theoretical results: (1) an analytic characterization consumption saving behaviour po...

Storable products allow consumers to time their purchases to exploit price fluctuations. It has been documented that during promotions consumers buy more. The additional purchases are potentially intended not only for current use, but to be stockpiled for future consumption. This paper discusses the predictions of a consumer inventory model and reviews the available evidence. We then discuss th...

This paper distinguishes relative risk aversion and resistance to intertemporal substitution in climate risk modeling. Stochastic recursive preferences are introduced in a stylized numeric climate-economy model using preliminary IPCC 1998 scenarios. It shows that higher risk aversion increases the optimal carbon tax. Higher resistance to intertemporal substitution alone has the same effect as i...

This article presents the effects of alternative fiscal policies on the intertemporal government budget constraint when the time horizon of the policy maker varies. I show that the wealth effect associated with cuts in the skill-adjusted labor income tax rate improves the intertemporal budget balance, whereas the intertemporal substitution effect associated with the physical capital income tax ...

This paper concerns the estimation of an intertemporal model for labour supply and consumption that recognises the presence of nonworkers and which is cast in a structural optimising framework that allows for uncertainty. Through the utilisation of a micro-data source that measures consumption and labour supply we are able to estimate a flexible preference model which incorporates comer solutio...

This paper analyzes aggregate wealth based on separable risk aversion and intertemporal substitution. In an in...nite-period OG model with survival uncertainty, economic growth, and permanent and temporary income shocks, our closed-form solution permits us to derive rich behavioral conclusions and to assess the relative importance of the major components of aggregate wealth. In particular, the ...

The price transmission from the international market to the domestic market of tunas was investigated in the present research. For this purpose, the elasticity of substitution between tuna imports with goods produced in Iran (Armington Elasticity) was calculated. Armington elasticity reflects a degree of substitution between commodities produced domestically and those produced abroad. A greater...

the non-differentiability and implicit definition of boundary of production possibility set (pps) in data envelopment analysis (dea) are two important difficulties for obtaining directional characteristics, including different elasticity measures and marginal rates of substitution. also, imposing weight restrictions in dea models have some shortcomings and misunderstandings. in this paper we ut...