Families as Shocks
AbstractIn this paper we show the quantitative importance of the process that determines changes in family composition to determine the main macroeconomic magnitudes. We do so by modelling family type as a stochastic process that affects households in a way similar to shocks to earnings. Agents respond to these process by optimally choosing savings. We show that the size of savings differs dramatically depending on the details of the stochastic process. The model is quantitative: its fundamental parameters are estimated using U.S. data.
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Bibliographic InfoPaper provided by Centro de Altisimos Estudios Rios Perez (CAERP) in its series Centro de Altisimos Estudios Rios Pe©rez(CAERP) with number 1.
Length: 16 pages
Date of creation: Aug 2002
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-05-15 (All new papers)
- NEP-DGE-2003-05-15 (Dynamic General Equilibrium)
- NEP-MAC-2003-05-15 (Macroeconomics)
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