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Author: Urban J. Jermann Publisher: ISBN: Category : Consumption (Economics) Languages : en Pages : 40
Book Description
When marginal utility of consumption depends on leisure, investors will take this into account when allocating their wealth among different assets. This paper presents a multi-country general equilibrium model driven by productivity shocks, where labor-leisure and consumption are chosen endogenously. We use this framework to study the effect of leisure for optimal international diversification. We find that in the symmetric case the model's ability to help explain home-bias depends crucially on the level of substitutability between consumption and leisure.
Author: Urban J. Jermann Publisher: ISBN: Category : Consumption (Economics) Languages : en Pages : 40
Book Description
When marginal utility of consumption depends on leisure, investors will take this into account when allocating their wealth among different assets. This paper presents a multi-country general equilibrium model driven by productivity shocks, where labor-leisure and consumption are chosen endogenously. We use this framework to study the effect of leisure for optimal international diversification. We find that in the symmetric case the model's ability to help explain home-bias depends crucially on the level of substitutability between consumption and leisure.
Author: Inderjit Singh Publisher: ISBN: Category : Agricultural industries Languages : en Pages : 360
Book Description
This book presents the basic model of an agricultural household that underlies most of the case studies undertaken so far. The model assumes that households are price-takers and is therefore recursive. The decisions modeled include those affecting production and the demand for inputs and those affecting consumption and the supply of labor. Comparative results on selected elasticities are presented for a number of economies. The empirical significance of the approach is demonstrated in a comparison of models that treat production and consumption decisions separately and those in which the decisionmaking process is recursive. The book summarizes the implications of agricultural pricing policy for the welfare of farm households, marketed surplus, the demand for nonagricultural goods and services, the rural labor market, budget revenues, and foreign exchange earnings. In addition, it is shown that the basic model can be extended in order to explore the effects of government policy on crop composition, nutritional status, health, saving, and investment and to provide a more comprehensive analysis of the effects on budget revenues and foreign exchange earnings. Methodological topics, primarily the data requirements of the basic model and its extensions, along with aggregation, market interaction, uncertainty, and market imperfections are discussed. The most important methodological issues - the question of the recursive property of these models - is also discussed.
Author: Stephen V. Cameron Publisher: ISBN: Category : Education Languages : en Pages : 106
Book Description
This paper examines an empirical regularity found in many societies: that family influences on the probability of transiting from one grade level to the next diminish at higher levels of education. We examine the statistical model used to establish the empirical regularity and the intuitive behavioral interpretation often used to rationalize it. We show that the implicit economic model assumes myopia. The intuitive interpretive model is identified only by imposing arbitrary distributional assumptions onto the data. We produce an alternative choice-theoretic model with fewer parameters that rationalizes the same data and is not based on arbitrary distributional assumptions.
Author: Marianne Baxter Publisher: ISBN: Category : Human capital Languages : en Pages : 36
Book Description
Although international financial markets are highly integrated across the more well-developed countries, investors nevertheless hold portfolios that consist nearly exclusively of domestic assets. This violation of the predictions of standard theories of portfolio choice is known as the 'international diversification puzzle.' In this paper, we show that the presence of nontraded risk associated with variations in the return to human capital has dramatic implications for the optimal fraction of domestic assets in an individual's portfolio. Our analysis suggests that the returns to human capital are highly correlated with the returns to domestic financial assets. Hedging the risk associated with nontraded human capital involves a short position in national equities in an amount approximately 1.5 times the value of the national stock market. Thus optimal and value- weighted portfolios very likely involve a short position in domestic marketable assets.
Author: Dora L. Costa Publisher: ISBN: Category : Hours of labor Languages : en Pages : 24
Book Description
I investigate how the distribution of daily hours worked among prime-aged men has changed since the 1890s by occupational and industrial group and by the hourly wage. I find that although hours of work have fallen for all workers, the decline was disproportionately large among the lowest paid workers. In the past hours worked were very unevenly distributed with the lowest paid workers working the longest day whereas today it is the highest paid workers who work the longest day. I argue that much of the change in the relative length of the work day can be accounted for by changes in the number of daily hours workers are willing to supply. I show that the unequal distribution of work hours in the past equalized income and that in recent times the unequal distribution of hours worked magnifies income disparities, suggesting that wage or wealth data may underestimate long-run improvements in the welfare of the lowest paid workers.
Author: Urban J. Jermann
Author: Urban J. Jermann
Author: Urban J. Jermann
Author: 
Author: Inderjit Singh
Author: 
Author: Stephen V. Cameron
Author: Marianne Baxter
Author: Dora L. Costa
Author: THORSTEIN. VEBLEN
Author: National Bureau of Economic Research