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Sunday, August 2, 2020 | History

4 edition of Precautionary savings and the wealth distribution with illiquid durables found in the catalog.

Precautionary savings and the wealth distribution with illiquid durables

Joseph W. Gruber

Precautionary savings and the wealth distribution with illiquid durables

by Joseph W. Gruber

  • 125 Want to read
  • 39 Currently reading

Published by Federal Reserve Board in Washington, D.C .
Written in English


Edition Notes

StatementJoseph W. Gruber, Robert F. Martin.
SeriesInternational finance discussion papers ;, no. 773, International finance discussion papers (Online) ;, no. 773.
ContributionsMartin, Robert F.
Classifications
LC ClassificationsHG3879
The Physical Object
FormatElectronic resource
ID Numbers
Open LibraryOL3390356M
LC Control Number2004620025

Here, we prefer to keep the entire wealth distribution as a state variable at the cost of focusing on a one-time shock, because our shock affects agents in different regions of the distribution very differently. 5 Midrigan and Philippon () take a different (and complementary) approach to modeling the effects of a credit crunch on the. Gruber, Joseph and Martin, Robert () Precautionary Savings and the Wealth Distribution with Illiquid Durables. Board of Governors of the Federal Reserve System international finance discussion paper Guler, Bulent () Innovations in information technology and the mortgage market.

Precautionary Savings and the Wealth Distribution with Illiquid Durables Board of Governors of the Federal Reserve System, International Finance Discussion Paper A Model of Housing Tenure Choice. George R. Zodrow, John W. Diamond, in Handbook of Computable General Equilibrium Modeling, Adding a precautionary saving motive: Engen and Gale model. As noted above, one common criticism of OLG-CGE models (that is invoked to an even greater extent with infinite-horizon models) is that they are characterized by savings responses to changes in after-tax rates of return that some.

  Table 1 reports their findings for the wealth distribution. The first row refers to data from the Survey of Consumer Finances (SCF). The second and third rows report the corresponding moments for respectively the baseline calibration and the one with higher earnings volatility in Aiyagari (see Quadrini and Ríos-Rull, ).The comparison makes clear that this version of the model comes.   Precautionary Savings and the Wealth Distribution with Illiquid Durables By Joseph W. Gruber and Robert F. Martin.


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Precautionary savings and the wealth distribution with illiquid durables by Joseph W. Gruber Download PDF EPUB FB2

Downloadable. We study the role an illiquid durable consumption good plays in determining the level of precautionary savings and the distribution of wealth in a standard Aiyagari model (i.e.

a model with heterogeneous agents, idiosyncratic uncertainty, and borrowing constraints). Transactions costs induce an inaction region over which the durable stock and the associated user cost are not.

BibTeX @INPROCEEDINGS{Gruber03precautionarysavings, author = {Joseph W. Gruber and Robert F. Martin}, title = {Precautionary Savings and the Wealth Distribution with Illiquid Durables}, booktitle = {International Finance Discussion Papers No.

Board of. Precautionary Savings and the Wealth Distribution with Illiquid Durables Article in SSRN Electronic Journal February with 22 Reads How we measure 'reads'. Precautionary savings and the wealth distribution with illiquid durables.

By Joseph Gruber and Robert Martin. Abstract. We study the role an illiquid durable consumption good plays in determining the level of precautionary savings and the distribution of wealth in a standard Aiyagari model (i.e.

a model with heterogeneous agents, idiosyncratic Author: Joseph Gruber and Robert Martin. Precautionary Savings and the Wealth Distribution with Illiquid Durables Precautionary Savings and the Wealth Distribution with Illiquid Durables Joseph W.

Gruber and Robert F. Martin* Abstract: We study the role an illiquid durable consumption good plays in determining the level of precautionary savings and the distribution of wealth in a Cited by: Precautionary Savings, Illiquid Assets, and the Aggregate Consequences of Shocks to Household Income Risk.

Christian Bayer. E-mail address: CENTRAL BANK POLICIES AND INCOME AND WEALTH INEQUALITY: A SURVEY, Journal of Economic Surveys. Notes: Net liquid assets are composed of money market, checking, savings and call accounts, as well as corporate and government bonds and T-bills net of credit card debt.

All other assets net of all other debt make up net illiquid wealth. (a) Change between and by quintile of the wealth distribution. Based on the Survey of. Joseph W. Gruber & Robert F. Martin, "Precautionary savings and the wealth distribution with illiquid durables," International Finance Discussion PapersBoard of Governors of the Federal Reserve System (U.S.), revised Robert F.

Martin, We study consumption of durable and nondurable goods when the durable good is subject to transaction costs.

In the model, agents derive utility from a service flow of a durable good and a consumption flow of a nondurable good. The key feature of the model is the existence of a fixed transaction cost in the durable good market.

The fixed cost induces an inaction region in the purchase of the. precautionary savings channel of uncertainty shocks by means of a dynamic stochastic general equilibrium model.

In this model, households have access to two types of assets to smooth consumption. They can either hold liquid money or invest in illiquid but div-idend paying physical capital. This asset structure allows us to disentangle savings and.

We study the role an illiquid durable consumption good plays in determining the level of precautionary savings and the distribution of wealth in a standard Aiyagari model (i.e. a model with. Precautionary Savings, Illiquid Assets, and the Aggregate Consequences of Shocks to Household Income Risk Preliminary and incomplete.

Christian Bayer y, Ralph Lütticke, z Lien Pham-Dao zand olkVer Tjaden J Abstract Households face large income uncertainty that ariesv substantially over the busi-ness cycle. Gruber, J. and Martin, R. () Precautionary Savings and the Wealth Distribution with Illiquid Durables.

International Finance Discussion PaperBoard of. Joseph W. Gruber & Robert F. Martin, "Precautionary savings and the wealth distribution with illiquid durables," International Finance Discussion PapersBoard of Governors of the Federal Reserve System (U.S.), revised Ana Castaneda & Javier Diaz-Gimenez &.

Joseph W. Gruber & Robert F. Martin, "Precautionary savings and the wealth distribution with illiquid durables," International Finance Discussion PapersBoard of Governors of the Federal Reserve System (U.S.), revised Fernández-Villaverde, Jesús & Krueger, Dirk, general equilibrium model.

Since increases in precautionary savings will a ect output negatively only if output depends on demand and if not all additional savings translate into investment, we model households to have access to two types of assets to smooth consumption.

They can either hold money or invest in illiquid but dividend paying cap-ital. Households in the top 20% of the wealth distribution hold % of all residential assets and % of all financial assets.

Furthermore, the composition of households' portfolios changes with the level of wealth. Housing wealth represents % of total wealth for households in the bottom 80% of the wealth distribution.

Joseph W. Gruber & Robert F. Martin, "Precautionary savings and the wealth distribution with illiquid durables," International Finance Discussion PapersBoard of Governors of the Federal Reserve System (U.S.), revised Atif Mian & Amir Sufi, Precautionary Savings and the Wealth Distribution with Illiquid Durables Joseph W.

Gruber and Robert F. Martin* Abstract: We study the role an illiquid durable consumption good plays in determining the level of precautionary savings and the distribution of wealth in.

Precautionary Savings and Wealth Distribution under Habit Formation Preferences. ” Journal of Monetary Economics, 50, Precautionary Savings and the Wealth Distribution with Illiquid Durables. ” International Finance Discussion Paper Krusell. Per, and. Smith. Anthony. We study the role of habit formation in shaping the amount of precautionary savings and the wealth distribution in heterogeneous agents model economies with idiosyncratic uncertainty.Precautionary Savings and the Wealth Distribution with an Illiquid Durable Good.

International Finance Discussion Paper No Board of Governors Federal Reserve System. (). Real Estate and it Role in Asset Pricing. Working paper. (). Recursive Macroeconomic Theory. (). Recursive Methods in Economic Dynamics.

(). Precautionary Savings, Illiquid Assets, and the Aggregate Consequences of Shocks to Household Income Risk Households with little human capital but high illiquid wealth lose the most from an uncertainty shock and gain the most from stabilization policy.

If you wish to purchase the right to make copies of this paper for distribution to.