A Benchmark Buffer Stock Model of Consumption and Income Dynamics

Chris Carroll Johns Hopkins University

Description

Model (Carroll (1992)+Aggregate Shocks)
Summary
References
A Benchmark Bu er Stock Model
of Consumption and Income Dynamics
Chris Carroll
Johns Hopkins University
JEDC Conference, Aug 31/Sep 1
Carroll A Benchmark of Consumption and Income DynamicsModel (Carroll (1992)+Aggregate Shocks) Carroll (1992)
Summary Income Process
References 9 F(p)
Main di erence with Aiyagari (1994) is income process
Aiyagari: Stationary Order 1 Markov transition matrix
Carroll :
Friedman (1957)/Muth (1960)
Transitory and Permanent shocks
Lillard and Weis (1979), MaCurdy (1982), Abowd and Card
(1989), etc etc
Carroll: Works well for household income in PSID
Virtues:
2 parameters, very simple, corresponds to theory, easy to
understand
Being serious about microfoundations of macro means being
serious about micro data
Caveat: all 2 parmaeter models can be rejected with 10000
datapoints
Carroll A Benchmark of Consumption and Income DynamicsModel (Carroll (1992)+Aggregate Shocks) Carroll (1992)
Summary Income Process
References 9 F(p)
Main di erence with Aiyagari (1994) is income process
Aiyagari: Stationary Order 1 Markov transition matrix
Carroll :
Friedman (1957)/Muth (1960)
Transitory and Permanent shocks
Lillard and Weis (1979), MaCurdy (1982), Abowd and Card
(1989), etc etc
Carroll: Works well for household income in PSID
Virtues:
2 parameters, very simple, corresponds to theory, easy to
understand
Being serious about microfoundations of macro means being
serious about micro data
Caveat: all ...

Sujets

• Carrollton (Texas)
• Linternaute.com
• Métrique de Friedmann-Lemaître-Robertson-Walker
• Muttiah Muralitharan
• Theory of a Deadman
• Weisshorn

Informations

• Publié par: Urdie
• Nombre de lectures: 44
• Langue: English

Extrait

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A Benchmark Buffer Stock Model of Consumption and Income Dynamics

Chris Carroll Johns Hopkins University

JEDC Conference, Aug 31/Sep 1

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Main difference with Aiyagari (1994) is income process Aiyagari: Stationary Order 1 Markov transition matrix Carroll : Friedman (1957)/Muth (1960) Transitory and Permanent shocks Lillard and Weis (1979), MaCurdy (1982), Abowd and Card (1989), etc etc Carroll: Works well forhouseholdincome in PSID Virtues: 2 parameters, very simple, corresponds to theory, easy to understand Being serious about microfoundations of macro means being serious about micro data Caveat:all2 parmaeter models can be rejected with 10000 datapoints

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Main difference with Aiyagari (1994) is income process Aiyagari: Stationary Order 1 Markov transition matrix Carroll : Friedman (1957)/Muth (1960) Transitory and Permanent shocks Lillard and Weis (1979), MaCurdy (1982), Abowd and Card (1989), etc etc Carroll: Works well forhouseholdincome in PSID Virtues: 2 parameters, very simple, corresponds to theory, easy to understand Being serious about microfoundations of macro means being serious about micro data Caveat:all2 parmaeter models can be rejected with 10000 datapoints

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Main difference with Aiyagari (1994) is income process Aiyagari: Stationary Order 1 Markov transition matrix Carroll : Friedman (1957)/Muth (1960) Transitory and Permanent shocks Lillard and Weis (1979), MaCurdy (1982), Abowd and Card (1989), etc etc Carroll: Works well forhouseholdincome in PSID Virtues: 2 parameters, very simple, corresponds to theory, easy to understand Being serious about microfoundations of macro means being serious about micro data Caveat:all2 parmaeter models can be rejected with 10000 datapoints

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Main difference with Aiyagari (1994) is income process Aiyagari: Stationary Order 1 Markov transition matrix Carroll : Friedman (1957)/Muth (1960) Transitory and Permanent shocks Lillard and Weis (1979), MaCurdy (1982), Abowd and Card (1989), etc etc Carroll: Works well forhouseholdincome in PSID Virtues: 2 parameters, very simple, corresponds to theory, easy to understand Being serious about microfoundations of macro means being serious about micro data Caveat:all2 parmaeter models can be rejected with 10000 datapoints

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Main difference with Aiyagari (1994) is income process Aiyagari: Stationary Order 1 Markov transition matrix Carroll : Friedman (1957)/Muth (1960) Transitory and Permanent shocks Lillard and Weis (1979), MaCurdy (1982), Abowd and Card (1989), etc etc Carroll: Works well forhouseholdincome in PSID Virtues: 2 parameters, very simple, corresponds to theory, easy to understand Being serious about microfoundations of macro means being serious about micro data Caveat:all2 parmaeter models can be rejected with 10000 datapoints

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Main difference with Aiyagari (1994) is income process Aiyagari: Stationary Order 1 Markov transition matrix Carroll : Friedman (1957)/Muth (1960) Transitory and Permanent shocks Lillard and Weis (1979), MaCurdy (1982), Abowd and Card (1989), etc etc Carroll: Works well forhouseholdincome in PSID Virtues: 2 parameters, very simple, corresponds to theory, easy to understand Being serious about microfoundations of macro means being serious about micro data Caveat:all2 parmaeter models can be rejected with 10000 datapoints

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Main difference with Aiyagari (1994) is income process Aiyagari: Stationary Order 1 Markov transition matrix Carroll : Friedman (1957)/Muth (1960) Transitory and Permanent shocks Lillard and Weis (1979), MaCurdy (1982), Abowd and Card (1989), etc etc Carroll: Works well forhouseholdincome in PSID Virtues: 2 parameters, very simple, corresponds to theory, easy to understand Being serious about microfoundations of macro means being serious about micro data Caveat:all2 parmaeter models can be rejected with 10000 datapoints

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Main difference with Aiyagari (1994) is income process Aiyagari: Stationary Order 1 Markov transition matrix Carroll : Friedman (1957)/Muth (1960) Transitory and Permanent shocks Lillard and Weis (1979), MaCurdy (1982), Abowd and Card (1989), etc etc Carroll: Works well forhouseholdincome in PSID Virtues: 2 parameters, very simple, corresponds to theory, easy to understand Being serious about microfoundations of macro means being serious about micro data Caveat:all2 parmaeter models can be rejected with 10000 datapoints

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Main difference with Aiyagari (1994) is income process Aiyagari: Stationary Order 1 Markov transition matrix Carroll : Friedman (1957)/Muth (1960) Transitory and Permanent shocks Lillard and Weis (1979), MaCurdy (1982), Abowd and Card (1989), etc etc Carroll: Works well forhouseholdincome in PSID Virtues: 2 parameters, very simple, corresponds to theory, easy to understand Being serious about microfoundations of macro means being serious about micro data Caveat:all2 parmaeter models can be rejected with 10000 datapoints

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Main difference with Aiyagari (1994) is income process Aiyagari: Stationary Order 1 Markov transition matrix Carroll : Friedman (1957)/Muth (1960) Transitory and Permanent shocks Lillard and Weis (1979), MaCurdy (1982), Abowd and Card (1989), etc etc Carroll: Works well forhouseholdincome in PSID Virtues: 2 parameters, very simple, corresponds to theory, easy to understand Being serious about microfoundations of macro means being serious about micro data Caveat:all2 parmaeter models can be rejected with 10000 datapoints

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