La prochaine séance des "déjeuners de l'économie" aura lieu le jeudi 9 novembre

Conférencier(e) :

Invité par : Arthur Silve

La prochaine séance des "déjeuners de l'économie" aura lieu le 9 novembre à 9h00 AM au local DES-2237.

Nous vous proposons la lecture de : "The Implications of Richer Earnings Dynamics for Consumption and Wealth" par Mariacristina De Nardi, Giulio Fella et Gonzalo Paz Pardo.

Comme d'habitude, le petit-déjeuner vous sera offert.
Invités ponctuels ou réguliers bienvenus

Ci-dessous le résumé du papier.

Abstract: Earnings dynamics are much richer than those typically used in macro models with heterogenous agents. This paper provides multiple contributions. First, it proposes a simple non-parametric method to model rich earnings dynamics that is easy to estimate and introduce in structural models. Second, it applies our method to estimate a nonparametric earnings process using two data sets: the Panel Study of Income Dynamics and a large, synthetic, data set that matches the dynamics of the U.S. tax earnings. Third, it uses a life cycle model of consumption to compare the consumption and saving implications of our two estimated processes to those of a standard AR(1). We find that, unlike the standard AR(1) process, our estimated, richer earnings process generates an increase in consumption inequality over the life cycle that is consistent with the data and better fits the savings of the households at the bottom 60%of the wealth distribution.