Wealth Accumulation Over the Life Cycle and Precautionary Savings

Cagetti, Marco

doi:10.1198/073500103288619007

Cited by 370 publications

(362 citation statements)

References 30 publications

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“…In this paper, we use a survey question to estimate the response of consumption to an unanticipated transitory income change. Shapiro and Slemrod (1995;2003) and Sahm, Shapiro, and Slemrod (2009) have used this approach extensively in the US context. In particular, they rely on survey data to measure individual responses to actual or hypothetical tax policies.…”

Section: Theoretical Predictions and Empirical Approachesmentioning

confidence: 99%

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Fiscal Policy and MPC Heterogeneity

Jappelli

Pistaferri

2014

American Economic Journal: Macroeconomics

249

189

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Section: Theoretical Predictions and Empirical Approachesmentioning

confidence: 99%

“…30 For instance, Cagetti (2003) uses PSID data and finds that β = 0.98 for the high educated (college degree) and 0.84 for the low educated (high-school dropouts).…”

Section: F Interpretationmentioning

confidence: 99%

Fiscal Policy and MPC Heterogeneity

Jappelli

Pistaferri

2014

American Economic Journal: Macroeconomics

249

189

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“…Accumulated wealth is typically used in retirement to finance both large financial commitments and also general daily consumption [31][32][33]. It also provides security against unexpected changes or events-such as deterioration of health-by providing a ''buffer stock of wealth'' [31,32].…”

Section: Discussionmentioning

confidence: 99%

Early retirement and the financial assets of individuals with back problems

et al. 2010

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This paper quantifies the relationship between early retirement due to back problems and wealth, and contributes to a more complete picture of the full costs associated with back problems. The output data set of the microsimulation model Health&WealthMOD was analysed. Health&WealthMOD was specifically designed to measure the economic impacts of ill health on Australian workers aged 45-64 years. People aged 45-64 years who are out of the labour force due to back problems have significantly less chance of having any accumulated wealth. While almost all individuals who are in full-time employment with no chronic health condition have some wealth accumulated, a significantly smaller proportion (89%) of those who have retired early due to back problems do. Of those who have retired early due to back problems who do have some wealth, on average the total value of this wealth is 87% less (95% CI: -90 to -84%) than the total value of wealth accumulated by those who have remained in full-time employment with no health condition controlling for age, sex and education. The financial burden placed on those retiring early due to back problems is likely to cause financial stress in the future, as not only have retired individuals lost an income stream from paid employment, but they also have little or no wealth to draw upon. Preventing early retirement due to back problems will increase the time individuals will have to amass savings to finance their retirement and to protect against financial shocks.

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“…In such a scenario, these alleles could moderate labor market outcomes such as income and earnings, but remain largely unrelated to net worth. Another possible explanation is that most young adults have relatively low wealth around age 30 (Land and Russell 1996;Cagetti 2003). More time may be required for GxE effects on wealth to emerge.…”

Section: Regression Analysesmentioning

confidence: 99%

Plastic and immobile: Unequal intergenerational mobility by genetic sensitivity score within sibling pairs

Rauscher

2017

Social Science Research

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Contrary to traditional biological arguments, the differential susceptibility model suggests genotype may moderate rather than mediate parent-child economic similarity. Using family fixed effects models of Add Health sibling data, I investigate the relationship between an index of sensitive genotypes and intergenerational mobility. Full, same sex sibling comparisons hold constant parental characteristics and address the non-random distribution of genotype that reduces internal validity in nationally representative samples. Across multiple measures of young adult financial standing, those with more copies of sensitive genotypes achieve lower economic outcomes than their sibling if they are from a low income context but fare better from a high income context. This genetic sensitivity to parental income entails lower intergenerational mobility. Results support the differential susceptibility model and contradict simplistic genetic explanations for intergenerational inequality, suggesting sensitive genotypes are not inherently positive or negative but rather increase dependence on parental income and reduce mobility.

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Wealth Accumulation Over the Life Cycle and Precautionary Savings

Cited by 370 publications

References 30 publications

Fiscal Policy and MPC Heterogeneity

Fiscal Policy and MPC Heterogeneity

Early retirement and the financial assets of individuals with back problems

Plastic and immobile: Unequal intergenerational mobility by genetic sensitivity score within sibling pairs

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