The United States has traditionally depended on the so-called three-legged stool—Social Security, private pensions, and additional personal saving—to finance retirement, but all three legs are becoming increasingly creaky. Social Security and Medicare face long-term financial shortfalls, because of a combination of the imminent retirement of the baby-boom generation, generally lengthening life ...

A growing body of research has centered on the issue of the relationship between financial and environmental performance. The lack of consensus in this literature can be attributed to several factors. The cost of complying with environmental regulation can be significant and detrimental to shareholder wealth maximization. Conversely, a firm that can effectively control pollution might also be a...

JEL Classification: D31, O41. This study proposes an economic growth model of structural change with heterogeneous households. It endogenously determine wealth accumulation and land value. Our model is based on three core theories in economics Walrasian general equilibrium theory, Ricardian theory of distribution, and neoclassical growth theory. The paper is focused on effects of changes in det...

This paper constructs a quantitative lifecycle model with uninsurable labor income and aggregate housing return risk to assess how Korean households make saving and portfolio allocation decisions. The model incorporates the special roles housing plays in the portfolio of households: collateral, a source of service flows, as well as a source of potential capital gains or losses. In the model, a ...

Wealth accumulation has important implications for the relative well-being of households. This article describes how household wealth in the United States varies by gender and family type. Evidence is found of large differences in observed wealth between single-female-headed households and married couples. Although some of this gap reflects differences in observable characteristics correlated w...

In this paper we examine implications of model uncertainty due to robustness (RB) for consumption, welfare, and aggregate savings under limited informationprocessing capacity (rational inattention or RI) in an otherwise standard permanent income model with filtering. We first solve the robust permanent income models with inattentive consumers and show that RI by itself creats an additional dema...

In Chinese cities, migrants with rural hukou, compared to residents local urban face more uncertainty, have limited access mortgage finance, and are less eligible for low-cost housing. A simple model demonstrates that these reasons, rural-to-urban likely own housing units in cities as a result accumulate wealth. Our empirical analysis examines nationally representative household survey from 201...