Last edited by Faular
Tuesday, August 4, 2020 | History

3 edition of On the welfare costs of consumption uncertainty found in the catalog.

On the welfare costs of consumption uncertainty

Barro, Robert J.

On the welfare costs of consumption uncertainty

by Barro, Robert J.

  • 91 Want to read
  • 20 Currently reading

Published by National Bureau of Economic Research in Cambridge, Mass .
Written in English

    Subjects:
  • Consumption (Economics) -- Mathematical models,
  • Risk -- Economic aspects

  • Edition Notes

    StatementRobert J. Barro.
    SeriesNBER working paper series -- no. 12763., Working paper series (National Bureau of Economic Research) -- working paper no. 12763.
    ContributionsNational Bureau of Economic Research.
    The Physical Object
    Pagination30 p. ;
    Number of Pages30
    ID Numbers
    Open LibraryOL17631812M
    OCLC/WorldCa77530294

    With this idea in mind, it is possible to formulate a quantitative life-cycle model of individual consumption and savings to compute the welfare cost of this uncertainty. We do this by using our reduced-form measure of retirement uncertainty, to calibrate the distribution of retirement uncertainty in the model.   Caliendo et al. () build a continuous-time life cycle model calibrated to the US economy and argue that the welfare cost of uncertainty, relative to an economy without uncertainty, is large for non-savers but minimal for savers. I add a general equilibrium channel through which uncertainty affects household decisions and welfare.

    Cost-Effectiveness Analysis (CEA) determines climate policies that reach a given climate target at minimum welfare losses. However, when applied to temperature targets under climate sensitivity uncertainty, decision-makers might be confronted with normatively unappealing negative expected values of future climate information or even infeasible solutions. Welfare economics is a branch of economics that uses microeconomic techniques to evaluate well-being (welfare) at the aggregate (economy-wide) level.. Attempting to apply the principles of welfare economics gives rise to the field of public economics, the study of how government might intervene to improve social e economics also provides the theoretical foundations for particular.

    Caliendo et al. () build a continuous-time life cycle model calibrated to the US economy and argue that the welfare cost of uncertainty, relative to an economy without uncertainty, is large for non-savers but minimal for savers. I add a general equilibrium channel through which uncertainty affects household decisions and welfare.   Summary: For myriad institutional and political reasons, the U.S. faces tremendous tax-policy uncertainty in both the near and long term. While good tax policy is always preferred to bad, economic literature increasingly finds that policy uncertainty itself has negative implications for the economy, reducing investment, consumption, employment and growth, and possibly prolonging a .


Share this book
You might also like
Dig deep!

Dig deep!

Breakfast with the Nikolides.

Breakfast with the Nikolides.

John Clarkes Orationes et declamationes habitae in Schola Lincolniensi.

John Clarkes Orationes et declamationes habitae in Schola Lincolniensi.

Social Cognition In Adolescence

Social Cognition In Adolescence

weather

weather

Commuter transport

Commuter transport

My borderland

My borderland

Perinatal retinal haemorrhages

Perinatal retinal haemorrhages

Maps of Durham, 1576-1872

Maps of Durham, 1576-1872

Rules relating to store accounts.

Rules relating to store accounts.

Lighthouse Service.

Lighthouse Service.

500recipes for quick meals

500recipes for quick meals

Economic co-operation agreement between Ireland and the United States of America

Economic co-operation agreement between Ireland and the United States of America

When

When

The 2000-2005 Outlook for Petroleum Refining in Latin America

The 2000-2005 Outlook for Petroleum Refining in Latin America

On the welfare costs of consumption uncertainty by Barro, Robert J. Download PDF EPUB FB2

On the Welfare Costs of Consumption Uncertainty Robert J. Barro. NBER Working Paper No. Issued in December NBER Program(s):Economic Fluctuations and Growth, Monetary Economics, Public Economics Satisfactory calculations of the welfare cost of aggregate consumption uncertainty require a framework that replicates major features of asset prices and returns, such as the high equity.

Get this from a library. On the welfare costs of consumption uncertainty. [Robert J Barro; National Bureau of Economic Research.] -- "Satisfactory calculations of the welfare cost of aggregate consumption uncertainty require a framework that replicates major features of asset prices and returns, such as the high equity premium and.

Downloadable. Separating the effects of uncertainty from realised events, and identifying the welfare effects of uncertainty, present a number of empirical challenges. Combining individual-level panel data from rural Ethiopia with high-resolution meteorological data, we introduce a new proxy for income uncertainty - mean-preserving rainfall variability - and estimate that an increase in income.

Recent estimates of the welfare cost of consumption volatility find that it is significant in developing nations, where it may reach an equivalent of reducing consumption by 10 percent per : Robert J. Barro. Barro R. On the Welfare Costs of Consumption Uncertainty. Abstract: Satisfactory calculations of the welfare cost of aggregate consumption uncertainty require a framework that replicates major features of asset prices and returns, such as the high equity premium and low risk-free rate.

CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): Satisfactory calculations of the welfare cost of aggregate consumption uncertainty require a framework that replicates major features of asset prices and returns, such as the high equity premium and low risk-free rate.

A Lucas-tree model with rare but large disasters is such a framework. The On the welfare costs of consumption uncertainty book welfare cost of macroeconomic uncertainty are presented in Table 1; see also results using a linear trend and a Hodrick and Prescott () filter to extract trends and cycles.

For the Beveridge–Nelson decomposition they are about % of per-capita consumption, which amounts to $ per person a year in US$. A one standard deviation change in income uncertainty is equivalent to a one standard deviation change in realised consumption. These results indicate that the welfare gains from further consumption smoothing are substantially greater than estimates based solely on consumption.

incorporating the welfare costs of uncertainty, our ndings help to provide a more complete understanding of the welfare gains from further consumption smoothing and risk management. The remainder of the paper is structured as follows: section 2 presents the con-text of the study and provides a brief review of the literature; section 3 presents the.

Downloadable. Uncertainty about the timing of retirement is a major financial risk with implications for decision making and welfare over the life cycle.

We estimate that the standard deviation of the difference between retirement expectations and actual retirement dates ranges from to years. We develop a quantitative model to assess the impact of this risk. The match with major features of asset pricing suggests that the model is a reasonable candidate for assessing the welfare cost of aggregate consumption uncertainty.

In the baseline simulation, the welfare cost of disaster risk is large -- society would be willing to lower real GDP by as much as 20% each year to eliminate the small chance of. Consumption Smoothing and the Welfare Cost of Uncertainty Abstract Separating the effects of uncertainty from realised events, and identifying the welfare effects of uncertainty, present a number of empirical challenges.

Combining individual-level panel data from rural Ethiopia with high-resolution meteorological data, we. Request PDF | Consumption Smoothing and the Welfare Cost of Uncertainty | When agents are unable to smooth consumption and have distorted beliefs about the.

With σ = 1, Fig. 4 shows the welfare effect of the intertemporal substitution elasticity of labor supply. The welfare gain decreases with the value of r, given the logarithmic utility of consumption, the welfare gain from labor supply uncertainty is always positive over a plausible range of the value of can be explained as follows.

The Welfare Cost of Perceived Policy Uncertainty: Evidence from Social Security by Erzo F. Luttmer and Andrew A. Samwick. Published in volumeissue 2, pages of American Economic Review, FebruaryAbstract: Policy uncertainty reduces individual welfare when.

In many ways, Robert Lucas' famous estimate of the welfare costs of the business cycle is a restatement of the equity premium puzzle. If you take a standard model in which consumer preferences are time-separable, iso-elastic and have 'plausible' levels of risk aversion, then the fluctuations in marginal utility associated with unanticipated movements in consumption generate welfare losses that.

On the Welfare Costs of Consumption Uncertainty* Robert J. Barro Harvard University January Abstract Satisfactory calculations of the welfare cost of aggregate consumption uncertainty require a framework that replicates major features of asset prices and returns, such as the high equity premium and low risk-free rate.

First published in This work contributes to the discussion of Knight by showing that uncertainty broadens the conception of economic welfare, and that a new cost analysis holds the key to unlocking the Knightian corpus.

On the Welfare Costs of Consumption Uncertainty. By Robert J. Barro. Get PDF ( KB) Abstract. Satisfactory calculations of the welfare cost of aggregate consumption uncertainty require a framework that replicates major features of asset prices and returns, such as the high equity premium and low risk-free rate.

BibTeX @MISC{Barro06thesource., author = {Robert J. Barro and Robert J. Barro and Robert J. Barro}, title = {the source. On the Welfare Costs of Consumption Uncertainty}, year = {}}. Consumption smoothing and the welfare cost of uncertainty Produced as part of the Adaptation to climate change and human development CCCEP research programme theme When agents are unable to smooth consumption and have distorted beliefs about the likelihood of future income realisations, uncertainty about future states of the world has a direct.This book redresses the balance.

Nicholas Barr's central contention is that—-contrary to popular opinion—-the welfare state exists for reasons additional to poverty relief. These reasons - encapsulated by the piggy-bank function - arise out of pervasive problems of imperfect information, risk, and uncertainty.Date Published: Nov 1, Abstract: Satisfactory calculations of the welfare cost of aggregate consumption uncertainty require a framework that replicates major features of asset prices and returns, such as the high equity premium and low risk-free rate.