25 DIW Economic Bulletin 11.2014 Aside from current income, the parameter of net worth represents a key resource in the economic activity of households. In addition, net worth has a specific function going far beyond the sheer fact of earning (for example, in the form of interest and dividends). It contributes significantly to stabilizing consumption in periods of income loss, while tangible as...

This study examines immigrant-native differences in wealth. It improves upon past research by contrasting immigrant-native differences against racial-ethnic differences and by operationalizing spatial segregation and spatial mismatch. Drawing on theories on wealth and theories on immigration, it hypothesizes a discounted positive effect of education and a weaker detrimental effect of spatial se...

We develop a simple model of credit market imperfections, in which the agents have access to a variety of investment projects, which differ in productivity, in the investment size, and in the severity of the agency problems behind the borrowing constraints. A movement in borrower net worth can shift the composition of the credit between projects with different productivity levels. The model thu...

Debt and Negative Net Worth Among Near Retirees

Household wealth and its distribution are topics of broad public debate and increasing scholarly interest. We compare the relative strength of two of the main data sources used in research on the wealth holdings of U.S. households, the Survey of Consumer Finances (SCF) and the Panel Study of Income Dynamics (PSID), by providing a description and explanation of differences in the level and distr...

In this article, we link an engineering concept, reliability, to a financial and managerial concept, net present value, by exploring the impact of a system’s reliability on its revenue generation capability. The framework here developed for non-repairable systems quantitatively captures the value of reliability from a financial standpoint. We show that traditional present value calculations of ...

This paper reviews researches on net present value done by researchers in the past 25 years to summarize research results and put forward limitations. Although investment decision guided possesses a long history investors use it widely current financial market, author believes that still has of being discussed studied. After comprehensive review, is found years, focused comparing its advantages...

Present worth (PW) analysis is an important technique in engineering economics for investment analysis. The values of PW parameters such as interest rate, first cost, salvage value and annual cash flow are generally estimated including some degree uncertainty. In order to capture the vagueness these parameters, fuzzy sets often used literature. this study, we introduce interval-valued intuition...

This paper proposes an alternative methodology to assess fiscal sustainability. Our balance-sheet approach (BSA) relies on estimating separately all of a government's assets and liabilities as opposed focusing only the burden explicit liabilities. In our approach, are primarily present discounted value taxes, include but also expenditures. Using liabilities, we compute balance sheet, therefore ...