Lucinda R. Gardner

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Financial planners typically advise people to shift investments away from stocks and toward bonds as they age. The planners commonly justify this advice in three ways. They argue that stocks are less risky over a young person’s long investment horizon, that stocks are often necessary for young people to meet large financial obligations (like college tuition(More)
This article develops a simple model that captures a concern for relative standing, or status. This concern is instrumental in the sense that individuals do not get utility directly from their relative standing, but, rather, the concern is induced because their relative standing affects their consumption of standard commodities. The article investigates the(More)
This article describes the current state of economic theory intended to explain the unequal distribution of wealth among U.S. households. The models reviewed are heterogeneous agent versions of standard neoclassical growth models with uninsurable idiosyncratic shocks to earnings. The models endogenously generate differences in asset holdings as a result of(More)
This article investigates the relationship between inflation and output, in the data and in standard models. The article reports that empirical cross-country studies generally find a nonlinear, negative relationship between inflation and output, a relationship that standard models cannot come close to reproducing. The article demonstrates that the models’(More)
A current U.S. policy is to introduce a new style of currency that is harder to counterfeit, but not immediately to withdraw from circulation all of the old-style currency. This policy is analyzed in a random matching model of money, and its potential to decrease counterfeiting in the long run is shown. For various parameters of the model, three types of(More)
This study overturns the conclusion of a 1990 study by David Humphrey and Allen Berger, which found that check float is responsible for the popularity of checks despite their high resource cost compared to electronic payment instruments. The new study examines recent data on the costs of checks and automated clearinghouse (ACH) payments. It finds that the(More)
This article describes three long-run monetary facts derived by examining data for 110 countries over a 30-year period, using three definitions of a country’s money supply and two subsamples of countries: (1) Growth rates of the money supply and the general price level are highly correlated for all three money definitions, for the full sample of countries,(More)
This article describes a new way to use monthly data to improve the national forecasts of quarterly economic models. This new method combines the forecasts of a monthly model with those of a quarterly model using weights that maximize forecasting accuracy. While none of the method’s steps is new, it is the first method to include all of them. It is also the(More)
ICE Ergonomics Ltd was commissioned to carry out an ergonomics appraisal of a selection of products for elderly people. The products chosen were 28 non-prescription items which were commercially available to the general public through retail outlets and marketed as aids to daily living for older members of the population. The survey included analysis of(More)