Perceived versus calibrated income risks in heterogeneous-agent consumption models / by Tao Wang. : FB3-5/2023-59E-PDF
"Models of microeconomic consumption (including those used in heterogeneous-agent macroeconomic models) typically calibrate the size of income risk to match panel data on household income dynamics. But, for several reasons, what is measured as risk from such data may not correspond to the risk perceived by the agent. This paper instead uses data from the Federal Reserve Bank of New York's Survey of Consumer Expectations to directly calibrate perceived income risks. One of several examples of the implications of heterogeneity in perceived income risks is increased wealth inequality stemming from differential precautionary saving motives. I also explore the implications of the fact that the perceived risk is lower than the calibrated level of risk either because of unobserved heterogeneity by researchers or because of overconfidence by the agents"--Abstract, page ii.
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| Ministère/Organisme | Bank of Canada, issuing body. |
|---|---|
| Titre | Perceived versus calibrated income risks in heterogeneous-agent consumption models / by Tao Wang. |
| Titre de la série | Staff working paper = Document de travail du personnel, 1701-9397 ; 2023-59 |
| Type de publication | Série - Voir l'enregistrement principal |
| Langue | [Anglais] |
| Format | Électronique |
| Document électronique | |
| Note(s) | ISSN assigned to different series. "Last updated: December 27, 2023." Includes bibliographical references (pages 45-49). Includes abstracts in English and French. |
| Information sur la publication | [Ottawa] : Bank of Canada = Banque du Canada, 2023. ©2023 |
| Auteur / Contributeur | Wang, Tao, author. |
| Description | 1 online resource (ii, 63 pages) : illustrations (chiefly colour). |
| Numéro de catalogue |
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| Descripteurs | Wages -- Econometric models. Labor market -- Econometric models. Risk -- Econometric models. Salaires -- Modèles économétriques. Marché du travail -- Modèles économétriques. Risque -- Modèles économétriques. |