Housing Market Fluctuations in a Life-Cycle Economy with Credit Constraints

1998 ◽  
Author(s):  
François Ortalo-Magné ◽  
Sven Helmar Rady
Keyword(s):  
Life Cycle ◽  
Housing Market ◽  
Credit Constraints ◽  
Cycle Economy

Optimal Mirrleesean Taxation in a Ben-Porath Economy

2015 ◽  
Vol 7 (2) ◽  
pp. 219-248 ◽  
Author(s):  
Marek Kapička
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
Income Taxes ◽  
Optimal Tax ◽  
Cycle Economy ◽  
The Us ◽  
Optimal Taxes

I characterize optimal taxes in a life-cycle economy where ability and human capital are unobservable. I show that unobservable human capital effectively makes preferences over labor nonseparable across age. I generalize the static optimal tax formulas to account for such nonseparabilities and show how they depend both on own-Frisch labor elasticities and cross-Frisch labor elasticities. I calibrate the economy to US data. I find that the optimal marginal income taxes decrease with age, in contrast to both the US tax code and to a model with observable human capital. I demonstrate that the behavior of cross-Frisch elasticities is essential in explaining the decline. (JEL D91, H21, H24, J24)

scholarly journals Nonconvexities, Retirement, and the Elasticity of Labor Supply

2013 ◽  
Vol 103 (4) ◽  
pp. 1445-1462 ◽  
Author(s):  
Richard Rogerson ◽  
Johanna Wallenius
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
Labor Supply ◽  
Capital Accumulation ◽  
Credit Constraints ◽  
Elasticity Of Substitution ◽  
Human Capital Accumulation ◽  
Hours Worked ◽  
Younger Workers ◽  
Life Cycle Models

We consider two life cycle models of labor supply that use nonconvexities to generate retirement. In each case we derive a link between hours worked prior to retirement, the intertemporal elasticity of substitution for labor (IES), and the size of the nonconvexities. This link is robust to allowing for credit constraints and human capital accumulation by younger workers and suggests values for the IES that are .75 or higher. (JEL D91, J22, J24, J26)

scholarly journals Optimal Life Cycle Portfolio Choice with Housing Market Cycles

2013 ◽  
Vol 26 (9) ◽  
pp. 2311-2352 ◽  
Author(s):  
Marcel Fischer ◽  
Michael Z. Stamos
Keyword(s):  
Life Cycle ◽  
Housing Market ◽  
Portfolio Choice
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