Orazio P. Attanasio

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We show that a life-cycle model with realistically calibrated uninsurable labor income risk and moderate risk aversion can simultaneously match stock market participation rates and asset allocation decisions conditional on participation. The key ingredients of the model are Epstein–Zin preferences, a fixed stock market entry cost, and moderate heterogeneity(More)
Previous work has had difficulty generating household saving behavior that makes the distribution of wealth much more concentrated than that of labor earnings, and that makes the richest households hold onto large amounts of wealth, even during very old age. I construct a quantitative, general equilibrium, overlapping-generations model in which parents and(More)
We investigate the effects of the drastic tariff reductions of the 1980s and 1990s in Colombia on the wage distribution. We identify three main channels through which the wage distribution was affected: increasing returns to college education, changes in industry wages that hurt sectors with initially lower wages and a higher fraction of unskilled workers,(More)
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)
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In this paper we study the life cycle labour force participation of three cohorts of American women: those born in the 1930s, 1940s and 1950s. We …rst document the large shifts in labour supply behaviour among these three cohorts. We then use a life cycle model with endogenous female labour force participation, consumption and saving choices to search for(More)
In this paper we develop a recursive approach to study efficient allocations in a dynamic moral hazard setting, where agents can borrow and lend and their decisions about effort, consumption and savings are private information. The recursive formulation of the problem is based on a generalized first order approach, whose validity is verified using a(More)
This study quantitatively assesses the effects of inflation through changes in the value of nominal assets. It documents nominal asset positions in the United States across sectors and groups of households and estimates the wealth redistribution caused by a moderate inflation episode. The main losers from inflation are rich, old households, the major(More)
In this paper we use an economic model to analyse data from a major social experiment, namely PROGRESA in Mexico, and to evaluate its impact on school participation. In the process we also show the usefulness of using experimental data to estimate a structural economic model. The evaluation sample includes data from villages where the program was(More)