Projects per year
Abstract
© The editors of The Scandinavian Journal of Economics 2014. We analyze how the introduction of habits and aspirations affects the distribution of wealth when the labor productivity of individuals is subject to idiosyncratic shocks and when bequests arise from a joy-of-giving motive. In the presence of either bequests or aspirations, labor income shocks are transmitted intergenerationally, and this transmission, together with contemporaneous shocks, determines the distribution of wealth. We show that the introduction of aspirations (habits) decreases (increases) the average wealth, and increases (decreases) both its intragenerational variability and the degree of intergenerational mobility. Therefore, a distinction between aspirations and habits is relevant because they involve different implications for the distribution of wealth.
| Original language | English |
|---|---|
| Pages (from-to) | 1012-1043 |
| Journal | Scandinavian Journal of Economics |
| Volume | 116 |
| DOIs | |
| Publication status | Published - 1 Jan 2014 |
Keywords
- Bequests
- D31
- E21
- E62
- mobility
- variability
Fingerprint
Dive into the research topics of 'Effects of Aspirations and Habits on the Distribution of Wealth'. Together they form a unique fingerprint.Projects
- 1 Finished
-
LAS FLUCTUACIONES EN EL MERCADO DE TRABAJO Y LOS EFECTOS DE LA POLITICA MACROECONOMICA
Caballé, J. (Principal Investigator), Choi , S. (Researcher on contract), Gambetti , L. (Researcher on contract), Gierlinger , J. (Researcher on contract), Conesa Roca, J. C. (Investigator), Gnocchi , S. (Investigator), Obiols, F. (Investigator), Panadès Martí, J. (Investigator), Pappa , E. (Investigator) & Sorolla Amat, V. (Investigator)
1/01/13 → 31/12/15
Project: Research Projects and Other Grants