Publisher Summary Credit markets differ from standard markets in two important respects.
First, standard markets, which are the focus of classical competitive theory, involve a number …

Macroeconomics is evolving from the study of aggregate dynamics to the study of the
dynamics of the entire equilibrium distribution of allocations across individual economic …

How does wealth taxation differ from capital income taxation? When the return on
investment is equal across individuals, a well-known result is that the two tax systems are …

Models of giving have often been based on altruism. Examples include charity and
intergenerational transfers. The literatures on both subjects have centered around neutrality …

Standard one-sector growth models often have the counterfactual implication that
economies with access to similar technologies will converge to a common balanced growth …

The global financial crisis triggered severe shocks for developing countries, whose embrace
of greater commercial and financial openness has increased their exposure to external …

In the context of an overlapping-generations model, we show that Uquidity constraints on
households (i) raise the saving rate,(ii) strengthen the effect of growth on saving,(iii) increase …

We investigate why 75% of United States households do not hold stocks despite the equity
premium and predictions of expected-utility models. The question is relevant for …

An important assumption of the life-cycle model of consumption is the postulate of perfect
capital markets. This hypothesis has recently been challenged by substantial empirical …

This paper utilizes a unique data set of credit card accounts to analyze how people respond
to credit supply. Increases in credit limits generate an immediate and significant rise in debt …