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  • David B Gross, Anthony M Santomero Director, Nicholas S Souleles, Andy Abel, Jason Abrevaya, Franklin Allen +10 others
  • 1998
The Wharton Financial Institutions Center provides a multidisciplinary research approach to the problems and opportunities facing the financial services industry in its search for competitive excellence. The Center's research focuses on the issues related to managing risk at the firm level as well as ways to improve productivity and performance. The Center(More)
  • Mariacristina De Nardi, Eric French, John Bailey Jones, Jerome Adda, Kartik Athreya, Gadi Barlevy +15 others
  • 2009
This paper constructs a rich model of saving for retired single people. Our framework allows for bequest motives and heterogeneity in medical expenses and life expectancies. We estimate the model using AHEAD data and the method of simulated moments. The data show that out-of-pocket medical expenses rise quickly with both age and permanent income. For many(More)
  • Karen Dynan, Douglas Elmendorf, Daniel Sichel, Alan Auerbach, Chris Carroll, Molly Dahl +15 others
  • 2010
Using a representative longitudinal survey of U.S. households, we find that household income became noticeably more volatile between the early 1970s and the late 2000s despite the moderation seen in aggregate economic activity during this period. We estimate that the standard deviation of percent changes in household income rose about 30 percent between(More)
  • Luigi Guiso, Monica Paiella, Chris Carroll, Pierre Andrè Chiappori, Christian Gollier, Michaelis Haliassos +5 others
  • 2001
We use household survey data to construct a direct measure of absolute risk aversion based on the maximum price a consumer is willing to pay to enter a lottery. We relate this measure to consumers' endowment and attributes and to measures of background risk. We …nd that risk aversion is a decreasing function of endowment-thus rejecting CARA preferences-but(More)
  • Daron Acemoglu, Joe Altonji, Orazio Attanasio, Michael Baker, Mark Bils, Richard Blundell +14 others
  • 2006
The current literature offers two views on the nature of the labor income process. According to the first view, which we call the " restricted income profiles " (RIP) model, individuals are subject to large and very persistent shocks while facing similar life-cycle income profiles (MaCurdy, 1982). According to the alternative view, which we call the "(More)
  • Pierre-Olivier Gourinchas, Olivier Jeanne, Philippe Bacchetta, Chris Carroll, Francesco Caselli, Kerstin Gerling +7 others
  • 2006
The textbook neoclassical growth model predicts that countries with faster productivity growth should invest more and attract more foreign capital. We show that the allocation of capital flows across developing countries is the opposite of this prediction: capital does not flow more to countries that invest and grow more. We call this puzzle the "(More)
  • Martha Starr-Mccluer, Carol Bertaut, Chris Carroll, Dean Maki, Maria
  • 1998
This paper investigates the effects of stock market wealth on consumer spending. Traditional macroeconometric models estimate that a dollar's increase in stock market wealth boosts consumer spending by 3-7 cents per year. With the substantial 1990s rise in stock prices, the nature and magnitude of this "wealth effect" have been much debated. After(More)
  • Martin Bodenstein, Christopher J Erceg, Luca Guerrieri, David Backus, David Bowman, Brett Berger +6 others
  • 2007
This paper investigates how oil price shocks affect the trade balance and terms of trade in a two country DSGE model. Given that oil shocks may exert very different wealth effects on oil importers and exporters, the response of the external sector depends critically on the structure of financial risk-sharing. With incomplete markets, higher oil prices can(More)
  • Karen Dynan, Chris Carroll, Doug Elmendorf, Don Kohn, Atif Mian, Karen Pence +2 others
  • 2012
The recent plunge in U.S. home prices left many households that had borrowed voraciously during the credit boom highly leveraged, meaning that they had very high levels of debt relative to the value of their assets. Analysts often assert that this " debt overhang " created a need for household deleveraging that, in turn, has been depressing consumer(More)
  • Richard Blundell, Luigi Pistaferri, Itay Saporta-Eksten, Blundell, We, Mark Aguiar +5 others
  • 2012
In this paper we examine the link between wage inequality and consumption inequality using a life cycle model that incorporates household consumption and family labor supply decisions. We derive analytical expressions based on approximations for the dynamics of consumption, hours, and earnings of two earners in the presence of correlated wage shocks,(More)