This paper constructs a life-cycle model with intergenerational linkages to study wealth transfers between parents and children. Households are subject to stochastic earnings, and parents care about their children. While the parents are of working age, the utility of the children’s consumption enters the utility of the parents. In addition, when they die, parents like to leave bequests to their...

A continuous-time sequential job search model with savings and CARA preferences is solved analytically without resorting to unlimited borrowing and real-valued consumption. I isolate the effects of limited borrowing and nonnegative consumption as well as risk-aversion on the reservation wage by using a system of ordinary differential equations.

The notion of loanword assimilation is operationalized in a number of d~flerent ways, focusing on both linguistic and social aspects. The indices of integration thus constructed are applied to a set of lexical data elicited from Puerto Ricatz children and adults from East Harlem, New York. The results of this survey are analyzed statistically using the method of principal components. We interpr...

This paper uses a general equilibrium model with collateralized borrowing to show that increases in risk can have ambiguous effects on leverage, loan margins, loan amounts, and asset prices. Increasing risk about future payoffs and endowments can lead to riskier loans with larger balances and lower spreads even when lenders are riskaverse and borrowers can default. As well, increasing the covar...

This paper considers a simple dynamic model of tax compliance in which people may face binding borrowing constraints. The model leads to much different conclusions and policy recommendations than static models. In particular, the government cannot generate full compliance by setting the expected value of cheating to be negative. Also, it is possible for the government to set penalties in a way ...