RiskyContrib-Add.bib

@article{Cagetti2003jbes,
author = {Marco Cagetti},
title = {Wealth Accumulation Over the Life Cycle and Precautionary Savings},
journal = {Journal of Business \& Economic Statistics},
volume = {21},
number = {3},
pages = {339-353},
year  = {2003},
publisher = {Taylor & Francis},
doi = {10.1198/073500103288619007},

URL = {
        https://doi.org/10.1198/073500103288619007

},
eprint = {
        https://doi.org/10.1198/073500103288619007

}

}

@article{Carroll1997qje,
    author = {Carroll, Christopher D.},
    title = "{Buffer-Stock Saving and the Life Cycle/Permanent Income Hypothesis*}",
    journal = {The Quarterly Journal of Economics},
    volume = {112},
    number = {1},
    pages = {1-55},
    year = {1997},
    month = {02},
    abstract = "{This paper argues that the typical household's saving is better described by a “buffer-stock” version than by the traditional version of the Life Cycle/Permanent Income Hypothesis (LC/PIH) model. Buffer-stock behavior emerges if consumers with important income uncertainty are sufficiently impatient. In the traditional model, consumption growth is determined solely by tastes. In contrast, buffer-stock consumers set average consumption growth equal to average labor income growth, regardless of tastes. The model can explain three empirical puzzles: the “consumption/income parallel” documented by Carroll and Summers; the “consumption/income divergence” first documented in the 1930s; and the stability of the household age/wealth profile over time despite the unpredictability of idiosyncratic wealth changes.}",
    issn = {0033-5533},
    doi = {10.1162/003355397555109},
    url = {https://doi.org/10.1162/003355397555109},
    eprint = {https://academic.oup.com/qje/article-pdf/112/1/1/5291627/112-1-1.pdf},
}

@article{Carroll1992bpea,
 ISSN = {00072303, 15334465},
 URL = {http://www.jstor.org/stable/2534582},
 author = {Carroll, Christopher D.},
 journal = {Brookings Papers on Economic Activity},
 number = {2},
 pages = {61--156},
 publisher = {Brookings Institution Press},
 title = {The Buffer-Stock Theory of Saving: Some Macroeconomic Evidence},
 volume = {1992},
 year = {1992}
}


@article{Carroll1997jme,
title = {The nature of precautionary wealth},
journal = {Journal of Monetary Economics},
volume = {40},
number = {1},
pages = {41-71},
year = {1997},
issn = {0304-3932},
doi = {https://doi.org/10.1016/S0304-3932(97)00036-6},
url = {https://www.sciencedirect.com/science/article/pii/S0304393297000366},
author = {Carroll, Christopher D. and Samwick, Andrew A.},
keywords = {Precautionary saving, Wealth, Income uncertainty},
abstract = {This paper uses the Panel Study of Income Dynamics to provide some of the first direct evidence that wealth is systematically higher for consumers with predictably greater income uncertainty. However, the apparent pattern of precautionary wealth is not consistent with a standard parameterization of the life cucle model in which consumers are patient enough to begin saving for retirement early in life; wealth is estimated to be far less sensitive to uncertainty than implied by that model. Instead, our results suggest that over most of their working life time, consumers behave in accordance with the ‘buffer-stock’ models of saving described in Carroll (1992, 1997) or Deaton (1991), in which consumers hold wealth principally to insulate consumption against near-term fluctuations in income.}
}

@inproceedings{Carroll2017ham,
  title={Heterogeneity, Macroeconomics, and Reality},
  author={Carroll, Christopher D.},
  booktitle={Keynote Lecture, Sloan-Bank of England-Office of Financial Research Conference on Heterogeneous Agent Macroeconomics, Washington DC},
  year={2017}
}

@article{Carroll2017qe,
author = {Carroll, Christopher D. and Slacalek, Jiri and Tokuoka, Kiichi and
White, Matthew N.},
title = {The distribution of wealth and the marginal propensity to consume},
journal = {Quantitative Economics},
volume = {8},
number = {3},
pages = {977-1020},
keywords = {Wealth distribution, marginal propensity to consume, heterogeneity,
inequality, D12, D31, D91, E21},
doi = {10.3982/QE694},
url = {https://onlinelibrary.wiley.com/doi/abs/10.3982/QE694},
eprint = {https://onlinelibrary.wiley.com/doi/pdf/10.3982/QE694},
abstract = {In a model calibrated to match micro- and macroeconomic evidence on
household income dynamics, we show that a modest degree of heterogeneity in
household preferences or beliefs is sufficient to match empirical measures of
wealth inequality in the United States. The heterogeneity-augmented model's
predictions are consistent with microeconomic evidence that suggests that the
annual marginal propensity to consume (MPC) is much larger than the roughly
0.04 implied by commonly used macroeconomic models (even ones including some
heterogeneity). The high MPC arises because many consumers hold little wealth
despite having a strong precautionary motive. Our model also plausibly predicts
that the aggregate MPC can differ greatly depending on how the shock is
distributed across households (depending, e.g., on their wealth, or employment
status).},
year = {2017}
}

@InProceedings{carroll2018HARK,
  author    = {Carroll, Christopher D. and Kaufman, Alexander M. and Kazil, Jacqueline L. and Palmer, Nathan M. and White, Matthew N.},
  title     = { {T}he {E}con-{A}{R}{K} and {H}{A}{R}{K}: {O}pen {S}ource {T}ools for {C}omputational {E}conomics },
  booktitle = { {P}roceedings of the 17th {P}ython in {S}cience {C}onference },
  pages     = { 25 - 30 },
  year      = { 2018 },
  editor    = { {F}atih {A}kici and {D}avid {L}ippa and {D}illon {N}iederhut and {M} {P}acer },
  doi       = { 10.25080/Majora-4af1f417-004 }
}

@article{Carroll2020solvingmicrodsops,
  title={Solution Methods for Microeconomic Dynamic Stochastic Optimization Problems},
  author={Carroll, Christopher D.},
  year={2020},
  journal={Unpublished Manuscript},
  url={https://www.econ2.jhu.edu/people/ccarroll/SolvingMicroDSOPs/}
}

@article{Cocco2005rfs,
	author = {Cocco, Jo\~ao F. and Gomes, Francisco J. and Maenhout, Pascal J.},
	title = "{Consumption and Portfolio Choice over the Life Cycle}",
	journal = {The Review of Financial Studies},
	volume = {18},
	number = {2},
	pages = {491-533},
	year = {2005},
	month = {02},
	abstract = "{This article solves a realistically calibrated life cycle
	model of consumption and portfolio choice with non-tradable labor income
	and borrowing constraints. Since labor income substitutes for riskless
	asset holdings, the optimal share invested in equities is roughly
	decreasing over life. We compute a measure of the importance of human
	capital for investment behavior. We find that ignoring labor income
	generates large utility costs, while the cost of ignoring only its risk is
	an order of magnitude smaller, except when we allow for a disastrous labor
	income shock. Moreover, we study the implications of introducing endogenous
	borrowing constraints in this incomplete-markets setting.}",
	issn = {0893-9454},
	doi = {10.1093/rfs/hhi017},
	url = {https://doi.org/10.1093/rfs/hhi017},
	eprint =
	{http://oup.prod.sis.lan/rfs/article-pdf/18/2/491/24421441/hhi017.pdf},
}

@article{Druedahl2020compecon,
  title={A Guide On Solving Non-Convex Consumption-Saving Models},
  author={Druedahl, Jeppe},
  journal={Computational Economics},
  pages={1--29},
  year={2020},
  publisher={Springer}
}

@article{Fagereng2017jof,
	author = {Fagereng, Andreas and Gottlieb, Charles and Guiso, Luigi},
	title = {Asset Market Participation and Portfolio Choice over the
	Life-Cycle},
	journal = {The Journal of Finance},
	volume = {72},
	number = {2},
	pages = {705-750},
	doi = {10.1111/jofi.12484},
	url = {https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12484},
	eprint = {https://onlinelibrary.wiley.com/doi/pdf/10.1111/jofi.12484},
	abstract = {ABSTRACT Using error-free data on life-cycle portfolio
	allocations of a large sample of Norwegian households, we document a double
	adjustment as households age: a rebalancing of the portfolio composition
	away from stocks as they approach retirement and stock market exit after
	retirement. When structurally estimating an extended life-cycle model, the
	parameter combination that best fits the data is one with a relatively
	large risk aversion, a small per-period participation cost, and a yearly
	probability of a large stock market loss in line with the frequency of
	stock market crashes in Norway.},
	year = {2017}
}

@article{Giglio2021aer,
Author = {Giglio, Stefano and Maggiori, Matteo and Stroebel, Johannes and Utkus, Stephen},
Title = {Five Facts about Beliefs and Portfolios},
Journal = {American Economic Review},
Volume = {111},
Number = {5},
Year = {2021},
Month = {May},
Pages = {1481-1522},
DOI = {10.1257/aer.20200243},
URL = {https://www.aeaweb.org/articles?id=10.1257/aer.20200243}}

@article{Kaplan2014ecta,
	author = {Kaplan, Greg and Violante, Giovanni L.},
	title = {A Model of the Consumption Response to Fiscal Stimulus Payments},
	journal = {Econometrica},
	volume = {82},
	number = {4},
	pages = {1199-1239},
	keywords = {Consumption, fiscal stimulus payments, hand-to-mouth,
	liquidity},
	doi = {10.3982/ECTA10528},
	url = {https://onlinelibrary.wiley.com/doi/abs/10.3982/ECTA10528},
	eprint = {https://onlinelibrary.wiley.com/doi/pdf/10.3982/ECTA10528},
	abstract = {A wide body of empirical evidence finds that approximately 25
	percent of fiscal stimulus payments (e.g., tax rebates) are spent on
	nondurable household consumption in the quarter that they are received. To
	interpret this fact, we develop a structural economic model where
	households can hold two assets: a low-return liquid asset (e.g., cash,
	checking account) and a high-return illiquid asset that carries a
	transaction cost (e.g., housing, retirement account). The optimal
	life-cycle pattern of portfolio choice implies that many households in the
	model are “wealthy hand-to-mouth”: they hold little or no liquid wealth
	despite owning sizable quantities of illiquid assets. Therefore, they
	display large propensities to consume out of additional transitory income,
	and small propensities to consume out of news about future income. We
	document the existence of such households in data from the Survey of
	Consumer Finances. A version of the model parameterized to the 2001 tax
	rebate episode yields consumption responses to fiscal stimulus payments
	that are in line with the evidence, and an order of magnitude larger than
	in the standard “one-asset” framework. The model's nonlinearities with
	respect to the rebate size and the prevailing aggregate economic conditions
	have implications for policy design.},
	year = {2014}
}

@article{Luetticke2021aej_macro,
Author = {Luetticke, Ralph},
Title = {Transmission of Monetary Policy with Heterogeneity in Household Portfolios},
Journal = {American Economic Journal: Macroeconomics},
Volume = {13},
Number = {2},
Year = {2021},
Month = {April},
Pages = {1-25},
DOI = {10.1257/mac.20190064},
URL = {https://www.aeaweb.org/articles?id=10.1257/mac.20190064}}

@article{Sabelhaus2010jme,
title = {The great moderation in micro labor earnings},
journal = {Journal of Monetary Economics},
volume = {57},
number = {4},
pages = {391-403},
year = {2010},
issn = {0304-3932},
doi = {https://doi.org/10.1016/j.jmoneco.2010.04.003},
url = {https://www.sciencedirect.com/science/article/pii/S0304393210000358},
author = {John Sabelhaus and Jae Song},
keywords = {Labor earnings, Earnings volatility, Great moderation},
abstract = {Between 1980 and the early 1990s the variability of labor earnings growth rates across the prime-age working population fell significantly. This decline and timing are consistent with other macro and micro observations about growth variability that are collectively referred to as the “Great Moderation.” The variability of earnings growth is negatively correlated with age at any point in time, and the U.S. working age population got older during this period because the Baby Boom was aging. However, the decrease in variability was roughly uniform across all age groups, so population aging is not the source of the overall decline. The variance of log changes also declined at multi-year frequencies in such a way as to suggest that both permanent and transitory components of earnings shocks became more moderate. A simple identification strategy for separating age and cohort effects shows a very intuitive pattern of permanent and transitory shocks over the life cycle, and confirms that a shift over time in the stochastic process occurred even after controlling for age effects.}
}