We provide evidence of the stock market consumption wealth effect by using a local labor analysis. An increase in driven aggregate prices increases employment and payroll nontradable industries total, with no on tradable industries. In model geographic heterogeneity wealth, these responses imply an MPC 3.2 cents per year that 20 percent valuations, unless countered monetary policy, bill at leas...

We study the wealth distribution in Bewley economies with idiosyncratic capital income risk. We show analytically that under rather general conditions on the stochastic structure of the economy, a unique ergodic distribution of wealth displays a fat tail. © 2015 Elsevier Inc. All rights reserved. JEL classification: E13; E21; E24

This paper uses job seekers’ elicited beliefs about finding to disentangle the sources of decline in job-finding rates by duration unemployment. We document that have strong predictive power for finding, but are not revised downward when remaining unemployed and subject optimistic bias, especially long-term unemployed. Leveraging beliefs, we find substantial heterogeneity with resulting dynamic...

Earnings are riskier and more unequal for households born in the 1960s 1980s than those 1940s. Despite improvements financial conditions, younger generations less likely to be living their own homes older at same age. By using a life-cycle model with housing portfolio choice that includes flexible earnings risk aggregate asset price risk, I show changes dynamics account large part of reduction ...

Population aging is expected to slow US economic growth. We use variation in the predetermined component of population across states estimate impact on growth GDP per capita for 1980–2010. find that each 10 percent increase fraction age 60+ decreased by 5.5 percent. One-third reduction arose from slower employment growth; two-thirds due labor productivity Labor compensation and wages also decli...

This article presents an analysis of the current tenets Social teachings Catholic Church and their possible compatibility with free market theory practice. According to Author, Austrian School Economics, around creative entrepreneurship dynamic efficiency, can provide a new fruitful nexus between market.
 Key words: Doctrine, market, classical liberalism, entrepre-neurship, School.
 J...

This paper presents an environment in which firms’ productive heterogeneity passes through to wage dispersion via sequential search and endogenous worker effort levels. Despite small gains from trade, the model is able account for more than two thirds of the measured firm component of wage dispersion. The implied narrow range of worker utility effectively pins down the lowest wage in the distri...

This paper studies wage setting in a directed search model of multiworker firms facing within-firm equity constraints on wages. The reduce wages, as exploit their monopsony power over existing workers, rendering wages less responsive to productivity doing so. They also give rise time inconsistency the dynamic firm problem, face elastic labor supply short run than long run, making commitment fut...