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pir's Introduction

Perceived versus Calibrated Income Risks in Heterogeneous-agent Consumption Models

  • Originally circulated with the title "Perceived Income Risks"
  • Author: Tao Wang

To-knows

  • To download the entire working repo, go to the shell, navigate to the desirable locaiton, and type
    • git init
    • git clone https://github.com/iworld1991/PIR.git.
  • For the most recent draft, see here.

Structure of the code

Empirics

  1. Density estimation of the survey answers that draws from the general code DensityEst

  2. Income risks decomposition that draws on the income process class

  3. Micro empirical analysis on the cross-sectional heterogeneity of perceived risks (PR)

Model

Calibration

  1. Household wealth stats from SCF used for model comparison
  2. Parameters: stored as a dictionary, to be directly imported into model notebooks
  3. Calibration of the heterogeneous wage/unemployment risks from SCE

Model

  1. Life-cycle consumption/saving model with permanent/persistent/transitory income risks

  2. Stationary distribution and GE of the life cycle economy (no aggregate risks)

  3. Compare model results and data

Other derivative results (not in the main body of the paper)

  1. Markov regime switching model of subjective PR which draws from model class
  2. An extended life-cycle model with a Markov belief state
  3. An extended OLG-GE model with state-dependent beliefs of income risks

Supporting utilities/resources

  1. Utility

pir's People

Contributors

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