Life cycle

In addition to my recent work on labour supply with Hamish Low, Peter Levell and Virgina Sanchez Marcos, I am involved in some interesting projects:

– (S)cars in US recessions

with Kieran Larkin, Mario Padula and Morten Ravn. (available soon)

slides from Summer Institute presentation: SCars-NBER SI

– Euler equations, subjective expectations and income shocks

with Agnes Kovacs and Krisztina Molnar

Abstract:  In this paper, we make three substantive contributions: first, we use elicited subjective income expectations to identify the levels of permanent and transitory income shocks in a life-cycle framework; second, we use these shocks to assess whether households’ consumption is insulated from them; third, we use the shock data to estimate an Euler equation for consumption. We find that households are able to smooth transitory shocks, but adjust their consumption in response to permanent shocks, albeit not fully. The estimates of the Euler equation parameters with and without expectational errors are similar, which is consistent with rational expectations. We break new ground by combining data on subjective expectations about future income from the Michigan Survey with micro data on actual income
from the Consumer Expenditure Survey.
Read Abstract



Life cycle monograph

In October 2014 I gave the Zeuthen lectures at the University of Copenhagen on life cycle models of consumption and labour supply. I am now writing a Monograph from those lecture that will be published by MIT press.

Slides for the three lectures can be found here: Zeuthen1, Zeuthen2 and Zeuthen3.


Demographic trends, OLG Models, Saving

Can habits explain high saving in fast growing developing economies?

with Andrea Bonfatti, Sagiri Kitao and Guglielmo Weber

The annuity market in Chile