Federal Reserve Bank of Boston
600 Atlantic Avenue
Boston, MA 02106
Institutional Affiliation: Federal Reserve Bank of Boston
Information about this author at RePEc
NBER Working Papers and Publications
|September 1998||Risky Habits: On Risk Sharing, Habit Formation, and the Interpretation of International Consumption Correlations|
with Michael W. Klein: w6735
Standard international economic models with life cycle/permanent income consumption behavior predict that international portfolio diversification leads to high bilateral consumption correlations. Thus international consumption correlations have been empirically estimated as a test of international portfolio diversification and risk sharing. In this paper we investigate the international consumption correlations generated by a more general model which incorporates habit formation in consumption. We show that, in the presence of common interest rate movements, habit formation itself can generate positive international consumption correlations even in the absence of any international risk sharing. Empirical evidence presented in this paper suggests habit formation characterizes consumption...
Published: Fuhrer, Jeffrey C. and Michael W. Klein. "Risky Habits: On Risk Sharing, Habit Formation, And The Interpretation Of International Consumption Correlations," Review of International Economics, 2006, v14(4,Sep), 722-740. citation courtesy of
|September 1983||Average Marginal Tax Rates U.S. Household Interest and Dividend Income 1954-80|
with Arturo Estrella: w1201
This paper carefully outlines a method for the calculation of average marginal tax rates. The method is applied to Statistics of Income data for dividend and interest income earned by U.S. households from 1954 to 1980. To illustrate the effects these data can have inempirical work, the tax rates are used in comparing the sample moments of before and after-tax real yields on financial assets.