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The Age-Wealth Profile and The Life-Cycle Hypothesis: a Cohort Analysis with a Time Series of Cross-Sections of Italian Households Author info | Abstract | Publisher info | Download info | Related research | Statistics Tullio Jappelli () (CSEF, Università di Salerno, and CEPR )
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In this paper I estimate the age-wealth profile under two different identification assumptions about age, cohort and time effects. According to the life-cycle model, the two set of assumptions should yield similar age-wealth profiles. Using the 1984-1993 Italian Survey of Household Income and Wealth, the estimated average annual rate of wealth decumulation in old age is found to be between 3 and 6 percent. As in the life-cycle model, the cohort effect increases with year of birth. However, the results uncover also considerable population heterogeneity: the rates of wealth decumulation are much lower for rich households and households headed by individuals with higher education.
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Paper provided by Centre for Studies in Economics and Finance (CSEF), University of Salerno, Italy in its series CSEF Working Papers with number
14.
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Date of creation: 01 Jan 1999Date of revision:
Handle: RePEc:sef:csefwp:14Contact details of provider: Postal: 84084 Fisciano (SA) Phone: 089 - 96 3167 Fax: 089 - 96 3169 Email: Web page: http://www.csef.it/ More information through EDIRC
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Keywords: Subjective expectations precautionary saving excess sensitivity Other versions of this item:
Find related papers by JEL classification: E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
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