scholarly journals Long-Run Saving Dynamics: Evidence from Unexpected Inheritances

2020 ◽  
pp. 1-44
Author(s):  
Jeppe Druedahl ◽  
Alessandro Martinello
Keyword(s):  
Life Cycle ◽  
Parental Death ◽  
Precautionary Saving ◽  
Net Worth ◽  
Long Run ◽  
Saving Behavior ◽  
Consumption Saving

We exploit inheritance episodes to provide novel causal evidence on the long-run effects of a large financial windfall on saving behavior. For identification, we combine a longitudinal panel of administrative wealth reports with variation in the timing of sudden, unexpected parental deaths. We show that after inheritance net worth converges towards the path established before parental death, with only a third of the initial windfall remaining after nine years. We interpret these findings through the lens of a generalized consumption-saving framework. To quantitatively replicate this behavior, life-cycle consumption models require impatient consumers and strong precautionary saving motives.

scholarly journals The Response of Household Saving to the Large Shock of German Reunification

2008 ◽  
Vol 98 (5) ◽  
pp. 1798-1828 ◽  
Author(s):  
Nicola Fuchs-Schündeln
Keyword(s):  
Life Cycle ◽  
Natural Experiment ◽  
Precautionary Saving ◽  
German Reunification ◽  
Cycle Model ◽  
Household Saving ◽  
Saving Behavior ◽  
Saving Rates ◽  
Consumption Model ◽  
East West

German reunification was a large, unexpected shock for East Germans. Exploiting German reunification as a natural experiment, I analyze the validity of the life-cycle consumption model. I derive three stylized features concerning the saving behavior of East versus West Germans after reunification: (i) East Germans have higher saving rates than West Germans; (ii) this East-West gap is increasing in age at reunification; and (iii) for every cohort, this gap is declining over time. I show that a comprehensive life-cycle model can replicate these features. The precautionary saving motive is essential for the success of the model. (JEL D14, D91, E21)

scholarly journals When will the eel recover? A full life-cycle model

2007 ◽  
Vol 64 (7) ◽  
pp. 1491-1498 ◽  
Author(s):  
Mårten Åström ◽  
Willem Dekker
Keyword(s):  
Life Cycle ◽  
Distribution Area ◽  
European Eel ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Glass Eel ◽  
Full Life Cycle ◽  
Long Run ◽  
Spawning Stock ◽  
Full Life

Abstract Åström M., and Dekker W. 2007. When will the eel recover? A full life-cycle model. – ICES Journal of Marine Science, 64: 000–000: –. The European eel population has declined over the past decades in most of its distribution area, and the stock is outside safe biological limits. The EU has taken up the challenge to design a management system that ensures the escapement of 40% of spawning-stock biomass, relative to unexploited, unpolluted circumstances in unobstructed rivers. This ultimately aims to restore the spawning stock to a level at which glass eel production is not impaired, i.e. to restore to full historical glass eel recruitment. To explore the trajectory from the current depleted state to full recruitment recovery, we developed a simple model of stock dynamics, based on a simplified stock–recruitment relationship and the conventional dynamic pool assumptions. Recruitment trajectories under different future fishery regimes are explored, for the medium (one generation time) and long time-span (until full recruitment recovery). Reducing fisheries to zero, recovery is expected within ∼80 years, whereas under an ultimately sustainable fishing regime of just 10% of the current rate of fishing mortality, recovery may take more than 200 years. Moreover, management regimes, apparently leading to slight recovery of the stock in the coming 5–15 years, might still be unsustainable in the long run.

Integrated Training Solutions: An Effective Tool to Synchronize People and Maintenance (U.S. Navy LCAC Case Study)

2012 ◽  
Author(s):  
Maurice Hartey ◽  
Thomas Bodman ◽  
Arlene Korn
Keyword(s):  
Life Cycle ◽  
Life Cycle Cost ◽  
Training Programs ◽  
Operating Time ◽  
Life Cycle Management ◽  
Cost Driver ◽  
Maintenance Costs ◽  
Knowledge And Skills ◽  
Long Run

Maintenance, especially in a Marine environment, is continuous and costly. Life Cycle Management of a Marine Gas Turbine system encompasses many costs, of which repair parts, labor and equipment downtime associated with failures and maintenance are a significant portion. In fact, people (labor) make up the largest component of overall maintenance costs. Investing in people the largest cost driver to life cycle cost has a direct return in the long run, in terms of maintenance effectiveness and efficiencies. Applying and reinforcing knowledge and skills in a maintenance environment translates to improved reliability outcomes, longer operating time, fewer parts needs, and ultimately costs savings. However, given today’s constrained fiscal environment, the value of spending money for training rather than buying more parts or applying more maintenance, may not appear obvious. Such thinking is short sighted, and ultimately leads to reduced reliability and increased maintenance in the long run. This paper will explore these areas, and recommend how training programs can be effective predictive, proactive and responsive.

The Design and Implementation of Paperless Medical System (PMS) for Offshore Operating Company

2014 ◽  
pp. 1064-1072
Author(s):  
Nabil Ghalib
Keyword(s):  
Life Cycle ◽  
Support Function ◽  
Medical System ◽  
It Services ◽  
Service Levels ◽  
Design And Implementation ◽  
Long Run ◽  
Development Life Cycle ◽  
Core Function ◽  
Operating Company

Application software development has always been viewed as a massive challenge by companies that view IT services as a support function rather than a core function. The term “core” here implies that IT plays an enabler role to facilitate technology and services that support users to meet set business objectives in an efficient way. Furthermore, IT development is perceived by many managers as a burden; hence, they prefer the fast track implementation of specialized packages to deliver the majority of service levels over the long wait for systems to be built in-house, even though the latter option is more advantageous in the long run, as it offers a much better fit to all user requirements. With this dilemma in mind, this case is an example of how an in-house development solution was implemented. The case touches on positive and negative aspects of the decision to build the application and covers a range of issues encountered during every phase of the development life cycle.

scholarly journals Life cycle patterns of cognitive performance over the long run

2020 ◽  
Vol 117 (44) ◽  
pp. 27255-27261
Author(s):  
Anthony Strittmatter ◽  
Uwe Sunde ◽  
Dainis Zegners
Keyword(s):  
Life Cycle ◽  
Cognitive Performance ◽  
Individual Performance ◽  
Cycle Performance ◽  
Past Century ◽  
The Past ◽  
Long Run ◽  
Age Patterns ◽  
Life Cycle Patterns ◽  
Over Time

Little is known about how the age pattern in individual performance in cognitively demanding tasks changed over the past century. The main difficulty for measuring such life cycle performance patterns and their dynamics over time is related to the construction of a reliable measure that is comparable across individuals and over time and not affected by changes in technology or other environmental factors. This study presents evidence for the dynamics of life cycle patterns of cognitive performance over the past 125 y based on an analysis of data from professional chess tournaments. Individual move-by-move performance in more than 24,000 games is evaluated relative to an objective benchmark that is based on the respective optimal move suggested by a chess engine. This provides a precise and comparable measurement of individual performance for the same individual at different ages over long periods of time, exploiting the advantage of a strictly comparable task and a comparison with an identical performance benchmark. Repeated observations for the same individuals allow disentangling age patterns from idiosyncratic variation and analyzing how age patterns change over time and across birth cohorts. The findings document a hump-shaped performance profile over the life cycle and a long-run shift in the profile toward younger ages that is associated with cohort effects rather than period effects. This shift can be rationalized by greater experience, which is potentially a consequence of changes in education and training facilities related to digitization.

PP170 Quantifying the Life-Cycle Value of Second Generation Antipsychotics

2019 ◽  
Vol 35 (S1) ◽  
pp. 69-69
Author(s):  
Mikel Berdud ◽  
Niklas Wallin-Bernhardsson ◽  
Bernarda Zamora ◽  
Peter Lindgren ◽  
Adrian Towse
Keyword(s):  
Life Cycle ◽  
Cost Effectiveness ◽  
Consumer Surplus ◽  
Value Added ◽  
Dynamic Nature ◽  
Patent Expiration ◽  
Total Surplus ◽  
Long Run ◽  
Second Generation Antipsychotics ◽  
Producer Surplus

IntroductionWe estimate the life-cycle value of risperidone – Second-Generation Antipsychotics (SGA) – to balance the view that cost per Quality-Adjusted Life Year (QALY) estimates at launch are enough to guide access decisions. Study results will also drive discussion on access and price to recognize the dynamic nature of pharmaceutical pricing over the long-run.MethodsWe estimated number of patients treated for schizophrenia with risperidone in Sweden and the United Kingdom (UK) between 1994-2017 based on usage data form national statistics and volume sales data from IQVIA. We collected data from literature on the effectiveness (QALYs) and costs (EUR 2017) of risperidone (SGA) and haloperidol – First-Generation antipsychotic (FGA). We estimate the life-cycle value added by risperidone versus haloperidol, and the life-cycle distribution of the social surplus between the payer (consumer surplus) and the innovator (producer surplus).ResultsWe estimated the consumer surplus, the producer surplus, the Net Monetary Benefit (NMB) and Incremental Cost-Effectiveness Ratio (ICER) at each year and in aggregate terms (1993-2017). For the UK the producer surplus was ~28 percent out of the total surplus before patent expiration and five percent after patent expiration. In Sweden, producer surplus was around 6 percent out of the total surplus before patent expiration and one percent thereafter. In both countries, during the life-cycle of risperidone, the NMB per patient increased and the ICER decreased as a response to: (i) the launch of Risperidone Long-Acting Injectable (RLAI); and (ii) the generic entry.ConclusionsThe value added by risperidone increased during the life-cycle due to the launch of RLAI and the generic competition. This suggests that, considering the entire life-cycle, the value added by SGAs to the system is higher than the expected value estimated using cost-effectiveness analysis at launch. Pricing and reimbursement decisions should take into account the dynamic nature of pharmaceutical markets and the value added by innovative medicines over the long-run.

scholarly journals Comparison of the Applied Measures on the Simulated Scenarios for the Sustainable Building Construction through Carbon Footprint Emissions—Case Study of Building Construction in Serbia

2018 ◽  
Vol 10 (12) ◽  
pp. 4688
Author(s):  
Marina Nikolić Topalović ◽  
Milenko Stanković ◽  
Goran Ćirović ◽  
Dragan Pamučar
Keyword(s):  
Energy Efficiency ◽  
Life Cycle ◽  
Carbon Footprint ◽  
Phase 1 ◽  
Construction Materials ◽  
Building Construction ◽  
Long Term Effects ◽  
Embodied Carbon ◽  
Long Run ◽  
The Impact

Research was conducted to indicate the impact of the increased flow of thermal insulation materials on the environment due to the implementation of the new regulations on energy efficiency of buildings. The regulations on energy efficiency of buildings in Serbia came into force on 30 September 2012 for all new buildings as well as for buildings in the process of rehabilitation and reconstruction. For that purpose, the carbon footprint was analyzed in three scenarios (BS, S1 and S2) for which the quantities of construction materials and processes were calculated. The life cycle analysis (LCA), which is the basis for analyzing the carbon life cycle (LCACO2), was used in this study. Carbon Calculator was used for measuring carbon footprint, and URSA program to calculate the operational energy. This study was done in two phases. In Phase 1, the embodied carbon was measured to evaluate short-term effects of the implementation of the new regulations. Phase 2 included the first 10 years of building exploitation to evaluate the long-term effects of the new regulations. The analysis was done for the period of 10 years, further adjustments to the regulations regarding energy efficiency of the buildings in Serbia are expected in accordance with EU directives. The study shows that, in the short-run, Scenario BS has the lowest embodied carbon. In the long-run, after 3.66 years, Scenario S2 becomes a better option regarding the impact on the environment. The study reveals the necessity to include embodied carbon together with the whole life carbon to estimation the impact of a building on the environment.

Long-Run Effects of Debt versus Tax Financing

1975 ◽  
Vol 3 (4) ◽  
pp. 346-360
Author(s):  
Anibal Cavaco Silva
Keyword(s):  
Public Debt ◽  
Debt Service ◽  
Government Bonds ◽  
Net Worth ◽  
Free Distribution ◽  
Long Run ◽  
Tax Reduction

This paper reexamines Modigliani's remits of the long effects of an increment in public debt to finance a tax reduction or arising from a free distribution of government bonds Firstly, the effect of debt service on human and nonhuman wealth is introduced into the analysis. Secondly, it is shown that for the purpose of long-run debt analysis it is not legitimate to treat the cumulated change in saving as an equal change in net worth. This leads to a major correction of Modigliani's results.

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