Working paper icon

Working paper

Keeping Up With the Joneses and Unemployment Risk.

Abstract:

This paper characterises the dynamic behaviour of a growing economy where individuals ‘keep up with the Joneses’ and face uninsurable labour income risk. Idiosyncratic uncertainty about future labour income reduces the marginal propensity to consume out of financial wealth and raises the effective rate of discount in the aggregate consumption Euler equation. The higher the average rate of income growth, the higher the saving rate. If individuals have uncertain lifetimes, a higher mortality ra...

Expand abstract

Actions


Access Document


Files:

Authors


Patrick Toche More by this author
Volume:
63
Series:
Discussion paper series
Publication date:
2001
URN:
uuid:f146338f-bb05-46da-8218-79f2d0da9b03
Local pid:
ora:1100
Language:
English

Terms of use


Metrics



If you are the owner of this record, you can report an update to it here: Report update to this record

TO TOP