Income Risk and Mortgage Choice Among Japanese Households

2013 ◽  
Author(s):  
Michio Naoi ◽  
Yoko Moriizumi ◽  
Norifumi Yukutake
Keyword(s):  
Income Risk ◽  
Mortgage Choice

Dynamic effects of consumption tax reforms with durable consumption

2020 ◽  
Vol 20 (2) ◽  
Author(s):  
Qian Li
Keyword(s):  
Generation Model ◽  
Consumption Tax ◽  
Income Risk ◽  
Tax Reforms ◽  
Market Completeness ◽  
Durable Consumption ◽  
Poor Households ◽  
Borrowing Constraint ◽  
The Difference ◽  
Consumption Taxes

AbstractThis paper introduces durables into a dynamic general equilibrium overlapping generation model with idiosyncratic income shocks and endogenous borrowing constraints, which depend on durables. The aim of this paper is to evaluate the welfare effects of consumption tax reforms in a richer model that captures the difference between nondurable and durable consumption. When durables are considered, the standard results that a shift to consumption taxes is welfare improving are overturned. The mechanism of this opposing result is that consumption tax makes durable consumption more expensive without relaxing the borrowing constraint. The inability of borrowing to insure against income risk deviates the economy further away from market completeness and particularly hurts young and poor households. As a result, welfare decreases, coupled with negative redistribution.

Optimal Investment With Undiversifiable Income Risk

1993 ◽  
Vol 3 (2) ◽  
pp. 135-148 ◽  
Author(s):  
Darrell Duffie ◽  
Thaleia Zariphopoulou
Keyword(s):  
Optimal Investment ◽  
Income Risk

scholarly journals Decomposing changes in income risk using consumption data

10.3982/qe44 ◽  
2013 ◽  
Vol 4 (1) ◽  
pp. 1-37 ◽  
Author(s):  
Richard Blundell ◽  
Hamish Low ◽  
Ian Preston
Keyword(s):  
Income Risk ◽  
Consumption Data

scholarly journals Household Risk Management and Optimal Mortgage Choice

2003 ◽  
Vol 118 (4) ◽  
pp. 1449-1494 ◽  
Author(s):  
J. Y. Campbell ◽  
J. F. Cocco
Keyword(s):  
Risk Management ◽  
Mortgage Choice
Sign in / Sign up

Export Citation Format

Share Document