Optimal Savings Liquidation for Income Replacement in the Presence of Income Uncertainty

CFA Digest ◽  
2008 ◽  
Vol 38 (3) ◽  
pp. 78-79
Author(s):  
Brendan F. O’Connell
Keyword(s):  
Income Uncertainty

scholarly journals Market-based instruments for risk-averse farmers: rubber agroforest conservation in Jambi Province, Indonesia

2016 ◽  
Vol 22 (2) ◽  
pp. 133-155 ◽  
Author(s):  
Utkur Djanibekov ◽  
Grace B. Villamor
Keyword(s):  
Income Inequality ◽  
Risk Aversion ◽  
Real Options ◽  
Risk Averse ◽  
Variance Model ◽  
Income Uncertainty ◽  
Real Options Approach ◽  
Pigovian Taxes ◽  
Rubber Agroforest ◽  
Mean Variance

AbstractThis paper investigates the effectiveness of different market-based instruments (MBIs), such as eco-certification premiums, carbon payments, Pigovian taxes and their combination, to address the conversion of agroforests to monoculture systems and subsequent effects on incomes of risk-averse farmers under income uncertainty in Indonesia. For these, the authors develop a farm-level dynamic mean-variance model combined with a real options approach. Findings show that the conservation of agroforest is responsive to the risk-aversion level of farmers: the greater the level of risk aversion, the greater is the conserved area of agroforest. However, for all risk-averse farmers, additional incentives in the form of MBIs are still needed to prevent conversion of agroforest over the years, and only the combination of MBIs can achieve this target. Implementing fixed MBIs also contributes to stabilizing farmers’ incomes and reducing income risks. Consequently, the combined MBIs increase incomes and reduce income inequality between hardly and extremely risk-averse farmers.

Academic Tenure, Income Uncertainty, and Real Estate Risk-Taking

2021 ◽  
pp. 1-22
Author(s):  
Stuart J. Fowler ◽  
Sean Salter ◽  
Cayman Seagraves ◽  
Philip Seagraves
Keyword(s):  
Real Estate ◽  
Risk Taking ◽  
Income Uncertainty ◽  
Academic Tenure

scholarly journals Household Savings Decision and Income Uncertainty

2010 ◽  
Author(s):  
Martin Beznoska ◽  
Richard R. Ochmann
Keyword(s):  
Household Savings ◽  
Income Uncertainty

scholarly journals OPTIMAL DYNAMIC LABOR TAXATION

2007 ◽  
Vol 11 (5) ◽  
pp. 567-588 ◽  
Author(s):  
PARANTAP BASU ◽  
THOMAS I. RENSTRÖM
Keyword(s):  
Policy Instrument ◽  
Income Uncertainty ◽  
Optimal Paths ◽  
Labor Tax ◽  
Special Cases ◽  
Labor Taxation ◽  
Wage Tax ◽  
Optimal Dynamic ◽  
Optimal Dynamic Taxation ◽  
The Government

We analyze optimal dynamic taxation when labor supply is indivisible. As in Hansen (1985) and Rogerson (1988), markets are complete, and an employment lottery determines who works. The consumer can buy insurance to diversify this income uncertainty. The optimal wage tax is generally positive except for some special cases when leisure is nonnormal and the government can use debt as a policy instrument in addition to its tax instruments. We derive a HARA class of preferences, for which we characterize the dynamic paths of the wage tax. The optimal paths of the labor tax differ between divisible- and indivisible-labor economies.

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