Miles S. Kimball, Matthew D. Shapiro, Professor Matthew, D. Shapiro, Miles S. Kimball, Matthew D. Shapiro
Wave 2 early results conference. Shapiro is professor of economics and Kimball is associate professor of economics at the University of Michigan. Both are faculty associates of the Survey Research...
PalgravePrecautionary Draft- Comments Solicited Precautionary Saving and Precautionary Wealth (2006)
Social Security, Retirement and Wealth: Theory and Implications (2003)
Kimball, Miles S., Shapiro, Matthew D.
The effect of Social Security rules on the age people choose to retire can be critical in evaluating proposed changes to those rules. This research derives a theory of retirement that views...
liquid nberw .tex Liquidity (2001)
Con Tsan Precaution, Christopher D. Carroll, Miles S. Kimball
Economists working with numerical solutions to the optimal consumption/saving problem under uncertainty have long known that there are quantitatively important interactions between liquidity...
Estimating a Cardinal Attribute from Ordered Categorical Responses Subject to Noise (1996)
Professor Matthew, D. Shapiro, Miles Kimball, Miles S. Kimball, Matthew D. Shapiro, Matthew D. Shapiro
Estimating a Cardinal Attribute from Ordered Categorical Responses Subject to Noise This paper presents an estimate of the distribution of relative risk tolerance---a preference parameter quantifying...
Dougl W. Elmendorf, Miles S. Kimball
We analyze the effect of labor income risk on the joint saving/portfolio-composition problem. It is well known that when private insurance markets are incomplete, the insurance afforded by labor...
Robert B. Barsky, Robert B. Barsky, F. Thomas Juster, F. Thomas Juster, Miles S. Kimball, Miles S. Kimball, ...
This paper reports measures of preference parameters relating to risk tolerance, time preference, and intertemporal substitution. These measures are based on survey responses to hypothetical...
Peer Reviewed
An Experimental Approach in the Health and Retirement Study (1993)
Robert B. Barsky, F. Thomas Juster, Miles S. Kimball, Matthew D. Shapiro, Matthew D. Shapiro, Robert B. Barsky, ...
Shapiro also acknowledge the support of the Alfred P. Sloan Foundation. Carlos Quintanilla and Lisa Sanchez provided excellent research assistance. We gratefully acknowledge the constructive and...
The effect of demand uncertainty on a precommitted monopoly price (1989)
Under plausible conditions on the shape of a monopolist's or a monopolistic competitor's cost function, multiplicative demand uncertainty is shown to raise the firm's optimal precommitted price. It...
Taxation of Labor Income and the Demand for Risky Assets.
Elmendorf, Douglas W, Kimball, Miles S
This article analyzes the effect of labor income risk on the joint saving/portfolio-composition problem. Given decreasing absolute prudence, we find that even when labor income risk increases overall...
Precautionary Saving and Precautionary Wealth
Christopher D. Carroll, Miles S. Kimball
This is an entry for The New Palgrave Dictionary of Economics, 2nd Ed.
Precautionary Saving in the Small and in the Large
The theory of precautionary saving is shown in this paper to be isomorphic to the Arrow-Pratt theory of risk aversion, making possible the application of a large body of knowledge about risk aversion...
Labor Market Dynamics When Unemployment Is A Worker Discipline Device
Efficiency wage models of the effort elicitation type have important implications for labor market dynamics. These models have a wide array of discontinuous sunspot equilibria driven by extraneous...
Optimal Advice for Monetary Policy
Susanto Basu, Miles S. Kimball, N. Gregory Mankiw, David N. Weil
This paper addresses the issue of how to give optimal advice about monetary policy when it is known that the advice may not be heeded. We examine a simple macroeconomic model in which monetary policy...
The Quantitative Analytics of the Basic Neomonetarist Model
This paper constructs a dynamic macroeconomic model with less- than-perfect price flexibility which has a real side consistent with Real Business Cycle Theory, augmented by investment adjustment...
On the concavity of the consumption function
Christopher D. Carroll, Miles S. Kimball
Consumption (Economics)
Taxation of labor income and the demand for risky assets
Douglas W. Elmendorf, Miles S. Kimball
It is well known that the implicit insurance provided by labor income taxes can reduce total saving. We show that this insurance can change the composition of saving as well, because the reduction in...
The Quantitative Analytics of the Basic Neomonetarist Model.
This paper constructs a dynamic macroeconomic model with less-than-perfect price flexibility which has a classical side consistent with real business cycle theory, augmented by investment adjustment...
Are Technology Improvements Contractionary?
Susanto Basu, John G. Fernald, Miles S. Kimball
Yes. We construct a measure of aggregate technology change, controlling for aggregation effects, varying utilization of capital and labor, nonconstant returns, and imperfect competition. On impact,...
Sticky-Price Models and Durable Goods
Robert B. Barsky, Christopher L. House, Miles S. Kimball
The inclusion of a durable goods sector in sticky-price models has strong and unexpected implications. Even if most prices are flexible, a small durable goods sector with sticky prices may be...
This paper introduces the concept of standard risk aversion. A von Neumann-Morgenstern utility function has standard risk aversion if every risk that has a negative interaction with a small reduction...
Precautionary Saving in the Small and in the Large.
The theory of precautionary saving is shown to be isomorphic to the Arrow-Pratt theory of risk aversion, making possible the application of a large body of knowledge about risk aversion to...
On the Concavity of the Consumption Function
Christopher D. Carroll, Miles S. Kimball
Zeldes (1989) Carroll (1992; 1993), and others have shown that optimal consumption behavior for consumers facing income uncertainty can be remarkably different from the certainty-equivalent case....
The quantitative analysis of the basic neomonetarist model
Miles S. Kimball, Michael Woodford
Business cycles ; Econometric models ; Monetary policy ; Prices
Liquidity Constraints and Precautionary Saving
Christopher D Carroll, Miles S Kimball
Economists working with numerical solutions to the optimal consumption/saving problem under uncertainty have long known that there are quantitatively important interactions between liquidity...
Precautionary Saving and Consumption Smoothing Across Time and Possibilities
Kimball, Miles S, Weil, Philippe
This Paper examines how aversion to risk and aversion to intertemporal substitution determines the strength of the precautionary saving motive in a two-period model with Kreps-Porteus preferences....
Labor Supply: Are the Income and Substitution Effects Both Large or Both Small?
Miles S. Kimball, Matthew D. Shapiro
Labor supply is unresponsive to permanent changes in wage rates. Thus, income and substitution effects cancel, but are they both close to zero or both large? This paper develops a theory of labor...
Precautionary Saving and the Timing of Taxes
Miles S. Kimball, N. Gregory Mankiw
This paper analyzes the effects of government debt and income taxes on consumption and saving in a world of infinitely-lived households having uncertain and heterogeneous incomes. The special...
Precautionary Saving and the Marginal Propensity to Consume
The marginal propensity to consume out of wealth is important for evaluating the effects of taxation on consumption, assessing the possibility of multiple equilibria due to aggregate demand...
Precautionary Motives for Holding Assets
At least three types of precautionary motives are directly relevant to an agent's demand for assets. (I.) The precautionary saving motive, or prudence, can cause an agent to respond to a risk by...
Taxation of Labor Income and the Demand For Risky Assets
Douglas W. Elmendorf, Miles S. Kimball
The effect of uninsured labor income risk on the joint saving/portfolio composition decision is analyzed using new techniques from the theory of multiple risk-bearing. Applying this analysis, the...
Cyclical Productivity with Unobserved Input Variation
Susanto Basu, Miles S. Kimball
In this paper, we derive and estimate relationships governing variable utilization of capital and labor for a firm solving a dynamic cost-minimization problem. Our method allows for (i) imperfect...
Robert B. Barsky, Miles S. Kimball, F. Thomas Juster, Matthew D. Shapiro
Individuals' preferences underlying most economic behavior are likely to display substantial heterogeneity. This paper reports on direct measures of preference parameters relating to risk tolerance,...
Liquidity Constraints and Precautionary Saving
Christopher D. Carroll, Miles S. Kimball
Economists working with numerical solutions to the optimal consumption/saving problem under uncertainty have long known that there are quantitatively important interactions between liquidity...
Imputing Risk Tolerance from Survey Responses
Miles S. Kimball, Claudia R. Sahm, Matthew D. Shapiro
Economic theory assigns a central role to risk preferences. This paper develops a measure of relative risk tolerance using responses to hypothetical income gambles in the Health and Retirement Study....
This paper introduces the concept of standard risk aversion. A von Neumann-Morgenstern utility function has standard risk aversion if any risk makes a small reduction in wealth more painful (in the...
Precautionary Saving and the Timing of Taxes.
Kimball, Miles S, Mankiw, N Gregory
This paper analyzes the effects of government debt and income taxes on consumption and saving in a world of infinitely-lived households having uncertain and heterogeneous incomes. The special...
Social Security, Retirement and Wealth: Theory and Implications
Miles S. Kimball, Matthew D. Shapiro
The effect of Social Security rules on the age people choose to retire can be critical in evaluating proposed changes to those rules. This research derives a theory of retirement that views...
Risk Preferences in the PSID: Individual Imputations and Family Covariation
Miles S. Kimball, Claudia R. Sahm, Matthew D. Shapiro
Survey measures of preference parameters provide a means for accounting for otherwise unobserved heterogeneity.This paper presents measures of relative risk tolerance based on responses to survey...
Empirics on the Origins of Preferences: The Case of College Major and Religiosity
Miles S. Kimball, Colter M. Mitchell, Arland D. Thornton
Early life experiences are likely to be important for the formation of preferences. Religiosity is a key dimension of preferences, affecting many economic outcomes. This paper examines the effect of...