scholarly journals Accounting for the Rise in Consumer Bankruptcies

2010 ◽  
Vol 2 (2) ◽  
pp. 165-193 ◽  
Author(s):  
Igor Livshits ◽  
James MacGee ◽  
Michèle Tertilt
Keyword(s):  
United States ◽  
Life Cycle ◽  
Credit Market ◽  
The United States ◽  
Income Shocks ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Heterogeneous Agent ◽  
Working Age ◽  
The Cost

Personal bankruptcies in the United States have increased dramatically, rising from 1.4 per thousand working age adults in 1970 to 8.5 in 2002. We use a heterogeneous agent life-cycle model with competitive lenders to evaluate several commonly offered explanations. We find that increased uncertainty (income shocks, expense uncertainty) cannot account quantitatively for the rise in bankruptcies. Instead, the rise in filings appears mainly to reflect changes in the credit market environment: a decrease in the transaction cost of lending and in the cost of bankruptcy. We also argue that the abolition of usury laws and other legal changes were unimportant. (JEL D14, E44, G21, G28)

Free to Leave? A Welfare Analysis of Divorce Regimes

2017 ◽  
Vol 9 (3) ◽  
pp. 72-115 ◽  
Author(s):  
Raquel Fernández ◽  
Joyce Cheng Wong
Keyword(s):  
United States ◽  
Life Cycle ◽  
Marital Status ◽  
Welfare Analysis ◽  
The United States ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Ex Ante ◽  
Unilateral Divorce ◽  
Consumption Saving

During the 1970s, the United States switched from mutual consent to a unilateral divorce regime. Who benefited/lost from this change? We develop a dynamic life cycle model in which agents make consumption, saving, work, and marital-status decisions under a given divorce regime. Calibrating the model to match key moments for the 1940 cohort and conditioning solely on gender, our ex ante welfare analysis finds that women fare better under mutual consent whereas men prefer a unilateral system. Conditioning as well on initial productivity (expected income), we find that the top three quintiles of men and the top two quintiles of women prefer unilateral divorce. (JEL D91, J12, J16, K36)

scholarly journals Learning Your Earning: Are Labor Income Shocks Really Very Persistent?

2007 ◽  
Vol 97 (3) ◽  
pp. 687-712 ◽  
Author(s):  
Fatih Guvenen
Keyword(s):  
Life Cycle ◽  
Current Literature ◽  
Previous Literature ◽  
Labor Income ◽  
Income Shocks ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Consumption Data ◽  
Hip Process

The current literature offers two views on the nature of the labor income process. According to the first view, individuals are subject to very persistent income shocks while facing similar life-cycle income profiles (the RIP process, Thomas MaCurdy 1982). According to the alternative, individuals are subject to shocks with modest persistence while facing individual-specific profiles (the HIP process, Lee A. Lillard and Yoram A. Weiss 1979). In this paper we study the restrictions imposed by these two processes on consumption data—in the context of a life-cycle model—to distinguish between the two views. We find that the life-cycle model with a HIP process, which has not been studied in the previous literature, is consistent with several features of consumption data, whereas the model with a RIP process is consistent with some, but not with others. We conclude that the HIP model could be a credible contender to—and along some dimensions, a more coherent alternative than—the RIP model. (JEL D83, D91, E21, J31)

ACCOUNTING FOR LIFE-CYCLE WEALTH ACCUMULATION: THE ROLE OF HOUSING INSTITUTION

2011 ◽  
Vol 16 (4) ◽  
pp. 493-517 ◽  
Author(s):  
Sang-Wook (Stanley) Cho
Keyword(s):  
Life Cycle ◽  
The United States ◽  
Mortgage Market ◽  
Wealth Accumulation ◽  
Labor Income ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Policy Experiments ◽  
Cross Country

This paper constructs a quantitative general equilibrium life-cycle model with uninsurable labor income to account for the differences in wealth accumulation and homeownership between Korea and the United States. The model incorporates different structures in the housing market in the two countries, namely, the mortgage market and the rental arrangements. The results from the calibrated model quantitatively explain some empirical findings in the aggregate and life-cycle profiles of wealth and homeownership. Quantitative policy experiments show that the mortgage market alone can account for more than 40% of the differences in the aggregate homeownership ratios. When coupled with the rental arrangements, both institutions can account for approximately 52% of the differences in the cross-country homeownership ratios.

Media Conversion Analysis and Instructional Design Considerations

2000 ◽  
pp. 89-128
Author(s):  
France Belanger ◽  
Dianne H. Jordan
Keyword(s):  
Instructional Design ◽  
Life Cycle ◽  
Return On Investment ◽  
Distributed Learning ◽  
Initial Screening ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Design Considerations ◽  
The Cost ◽  
Benefit Cost

In chapter two, we discussed the different variables that impact suitability for DL. Chapter three provided the capabilities and limitations of technologies that can be used for distance and distributed learning. The purpose of this chapter is to provide guidance on the major steps involved in a media conversion analysis. They include the initial screening for DL suitability, determining what portion of the course is suitable for conversion, selecting the appropriate media for conversion, determining the number of hours required for development, pricing the cost of development and maintenance, and doing a benefit/cost or return on investment (ROI) analysis. Before beginning the discussion on media conversion analysis, a life-cycle model and approach to DL projects are outlined.

scholarly journals Is the selfish life-cycle model more applicable in Japan and, if so, why? A literature survey

2020 ◽  
Author(s):  
Charles Yuji Horioka
Keyword(s):  
Life Cycle ◽  
The United States ◽  
Economic Modeling ◽  
Government Policies ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Family Ties ◽  
Household Saving ◽  
Almost All ◽  
Consistent Support

Abstract The selfish life-cycle model or hypothesis is, together with the dynasty or altruism model, the most widely used theoretical model of household behavior in economics, but does this model apply in the case of a country like Japan, which is said to have closer family ties than other countries? In this paper, we first provide a brief exposition of the simplest version of the selfish life-cycle model and then survey the literature on household saving and bequest behavior in Japan in order to answer this question. The paper finds that almost all of the available evidence suggests that the selfish life-cycle model applies to at least some extent in all countries but that there is more consistent support for this model in Japan than in the United States and other countries. It then explores possible explanations for why the life-cycle model is more consistently supported in Japan than in other countries, attributing this finding to government policies, institutional factors, economic factors, demographic factors, and cultural factors. Finally, it shows that the findings of the paper have many important implications for economic modeling and for government tax and expenditure policies.

Explaining Changes in Female Labor Supply in a Life-Cycle Model

2008 ◽  
Vol 98 (4) ◽  
pp. 1517-1552 ◽  
Author(s):  
Orazio Attanasio ◽  
Hamish Low ◽  
Virginia Sánchez-Marcos
Keyword(s):  
Life Cycle ◽  
Labor Supply ◽  
Gender Gap ◽  
Female Labor Supply ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Female Labor ◽  
Female Participation ◽  
Cost Of Children ◽  
The Cost

This paper studies the life-cycle labor supply of three cohorts of American women, born in the 1930s, 1940s, and 1950s. We focus on the increase in labor supply of mothers between the 1940s and 1950s cohorts. We construct a life-cycle model of female participation and savings, and calibrate the model to match the behavior of the middle cohort. We investigate which changes in the determinants of labor supply account for the increases in participation early in the life-cycle observed for the youngest cohort. A combination of a reduction in the cost of children alongside a reduction in the wage-gender gap is needed. (JEL D91, J16, J22, J31)

scholarly journals Será que o brasileiro está poupando o suficiente para se aposentar?

2015 ◽  
Vol 13 (1) ◽  
pp. 1
Author(s):  
Ricardo D. Brito ◽  
Paulo T. P. Minari
Keyword(s):  
Life Cycle ◽  
Saving Rate ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Working Age ◽  
Per Capita ◽  
Life Circumstances ◽  
The Right ◽  
Household Incomes ◽  
Very High

This article answers the question: how much wealth should a Brazilian accumulate along time to sustain his (her) consumption during retirement? Using a life-cycle model, we simulate scenarios for different household incomes, family size, and life circumstances, to obtain the additional saving effort needed by future beneficiaries of the Regime Geral de Previdência Social (RGPS). Given the current high replacement rates, we show that more than 95% of the population needs no additional savings during their working age, because they will enjoy an increase in their “free” per capita income during retirement. In other words, surprisingly, a low voluntary saving rate is the right decision from the perspective of an average Brazilian that plans a smooth consumption, in the belief that current social security arrangements will persist. Were it not for the very high banking spread, it would be optimal for the average Brazilian to borrow in the working age to increase his (her) consumption level.

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