We construct a stochastic overlapping generations model in which households of di¤erent ages are subject to aggregate shocks that a¤ect both wages and asset prices. We use a realistically calibrated version of the model to assess the distributional consequences of severe recessions. More speci…cally, within the context of this model we ask whether young people can be better o¤ if they become ec...

The study of Artificial Neural Networks derives from first trials to translate in mathematical models the principles of biological “processing”. An Artificial Neural Network deals with generating, in the fastest times, an implicit and predictive model of the evolution of a system. In particular, it derives from experience its ability to be able to recognize some behaviours or situations and to ...

This paper analyzes a class of stochastic endogenous growth models with uninsurable idiosyncratic income risk. The model economy is populated by infinitely-lived households who own and operate their own business, work for a stock company, and participate in stock and bond markets. Households have timeand state-additive log-utility preferences and production functions exhibit constant returns to...

This paper provides an analytical characterization of the welfare effects of changes in cross-sectional wage dispersion, using a class of tractable heterogeneous-agent economies with various insurance market structures. We express welfare effects both in terms of changes in the observable joint distribution over individual wages, consumption and hours, and in terms of the underlying parameters ...

Capitalizing on the most recent worldwide estimates of the impacts of climate change on agricultural production, this paper assesses the economic effects of climate change for Southeast Asian countries through 2080. The results suggest that the aggregate impacts of agricultural damages caused by climate change on the global economy are moderate. However, the uneven distribution of productivity ...

We study the welfare cost of market incompleteness in a generalized Bewley model where idiosyncratic risk takes the form of entrepreneurial productivity shocks. Market incompleteness in our framework has two dimensions. First, in the Bewley tradition, only a limited set of instruments for consumption smoothing is available. Second, entrepreneurs’ capital rental is subject to collateral constrai...

Immigration is often seen as an instrument of adaptation for aging countries. In this paper, we evaluate, using a dynamic general equilibrium model, the contribution of migration policy in reducing the tax burden associated with the aging population in France. Four alternative scenarios, compared to a baseline scenario based on official projections, are simulated with the aim to quantify the im...

The present paper compares the distributional and risk-sharing consequences of two pension reform proposals in Germany which both aim to improve the sustainability of the current system by introducing demographic variables to the benefit calculation. While the first reform proposes a so-called ” sustainability factor“ which measures the changes in the dependency ratio, the second reform propose...

We combine the subjective well-being and the public finance literature analyzing the effect of paying taxes on individual happiness. Using a long panel of very rich German household data we show that conditional on net income paying taxes is associated with higher levels of happiness. Increasing taxes by 1 standard deviation yields an increase in happiness by 2.7 standard deviations. In accorda...

Although movements of capital, goods and services are growing in importance, workers movements are impeded by restrictive policies in rich countries. Such regulations carry substantial economic costs for developing countries, and prevent global inequality from declining. Even if rich countries are averse to global inequality, a single country lacks incentives to welcome additional migrants as i...