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Recursive Preferences, The Value Of Life, And Household Finance, Antoine Bommier, Daniel Harenberg, François Le Grand, Cormac O'Dea May 2020

Recursive Preferences, The Value Of Life, And Household Finance, Antoine Bommier, Daniel Harenberg, François Le Grand, Cormac O'Dea

Cowles Foundation Discussion Papers

We analyze lifecycle saving strategies using a recursive utility model calibrated to match empirical estimates for the value of a statistical life. We show that, with a positive value of life, risk aversion reduces savings and annuity purchase. Risk averse agents are willing to make an early death a not-so-adverse outcome by enjoying greater consumption when young and bequeathing wealth in case of death. We also find that greater risk aversion lowers stock market participation. We show that this model can rationalize low annuity demand while also matching empirically documented levels of wealth and private investments in stocks. Our findings …


Recursive Preferences, The Value Of Life, And Household Finance, Antoine Bommier, Daniel Harenberg, François Le Grand, Cormac O'Dea May 2020

Recursive Preferences, The Value Of Life, And Household Finance, Antoine Bommier, Daniel Harenberg, François Le Grand, Cormac O'Dea

Cowles Foundation Discussion Papers

We analyze lifecycle saving strategies using a recursive utility model calibrated to match empirical estimates of the value of a statistical life. The novelty of our approach is that we require preferences to be monotone with respect to first order stochastic dominance. The framework we use can disentangle risk aversion and the intertemporal elasticity and can feature a positive value of life without placing constraints on the value of the risk aversion parameter or the intertemporal elasticity of substitution. We show that, with a positive value of life, risk aversion reduces savings, decreases stock market participation and decreases annuity purchase. …


Belief Convergence Under Misspecified Learning: A Martingale Approach, Mira Frick, Ryota Iijima, Yuhta Ishii May 2020

Belief Convergence Under Misspecified Learning: A Martingale Approach, Mira Frick, Ryota Iijima, Yuhta Ishii

Cowles Foundation Discussion Papers

We present an approach to analyze learning outcomes in a broad class of misspecified environments, spanning both single-agent and social learning. We introduce a novel “prediction accuracy” order over subjective models, and observe that this makes it possible to partially restore standard martingale convergence arguments that apply under correctly specified learning. Based on this, we derive general conditions to determine when beliefs in a given environment converge to some long-run belief either locally or globally (i.e., from some or all initial beliefs). We show that these conditions can be applied, first, to unify and generalize various convergence results in previously …


Information On Reverse Auctions By Dnb, De Nederlandsche Bank (Dcb)/Central Bank Of The Netherlands May 2020

Information On Reverse Auctions By Dnb, De Nederlandsche Bank (Dcb)/Central Bank Of The Netherlands

Documents

DNB's terms and conditions for PEPP and PSPP reverse auctions


Bank Of England: Interim Financial Stability Report (May 2020), Bank Of England: Financial Policy Committee May 2020

Bank Of England: Interim Financial Stability Report (May 2020), Bank Of England: Financial Policy Committee

Documents

No abstract provided.


Bank Of England: Monetary Policy Report (May 2020), Bank Of England/Central Bank Of The United Kingdom: Monetary Policy Committee May 2020

Bank Of England: Monetary Policy Report (May 2020), Bank Of England/Central Bank Of The United Kingdom: Monetary Policy Committee

Documents

No abstract provided.


Interim Financial Stability Report, Bank Of England/Central Bank Of The United Kingdom May 2020

Interim Financial Stability Report, Bank Of England/Central Bank Of The United Kingdom

Documents

No abstract provided.


Asset Purchase Facility (Apf): Additional Corporate Bond Purchases - Market Notice 1 May 2020, Bank Of England/Central Bank Of The United Kingdom May 2020

Asset Purchase Facility (Apf): Additional Corporate Bond Purchases - Market Notice 1 May 2020, Bank Of England/Central Bank Of The United Kingdom

Documents

No abstract provided.


Establishment Of "Special Rules For Member Financial Institutions Of Central Organizations Of Financial Cooperatives To Use The Special Funds-Supplying Operations To Facilitate Financing In Response To The Novel Coronavirus (Covid-19)", Bank Of Japan/Central Bank Of Japan May 2020

Establishment Of "Special Rules For Member Financial Institutions Of Central Organizations Of Financial Cooperatives To Use The Special Funds-Supplying Operations To Facilitate Financing In Response To The Novel Coronavirus (Covid-19)", Bank Of Japan/Central Bank Of Japan

Documents

No abstract provided.


Financial Stability Report 2020.1, Sveriges Riksbank May 2020

Financial Stability Report 2020.1, Sveriges Riksbank

Documents

No abstract provided.


The Riksbank's Business Survey- "The Whole Of Society Is On Hold" Companies Struggling In The Wake Of The Pandemic, Sveriges Riksbank May 2020

The Riksbank's Business Survey- "The Whole Of Society Is On Hold" Companies Struggling In The Wake Of The Pandemic, Sveriges Riksbank

Documents

No abstract provided.


Financial Stability Report: May 2020, Federal Reserve System: Board Of Governors May 2020

Financial Stability Report: May 2020, Federal Reserve System: Board Of Governors

Documents

No abstract provided.


Anatomy Of A Liquidity Crisis: Corporate Bonds In The Covid-19 Crisis, Xing "Alex" Zhou, Maureen O'Hara May 2020

Anatomy Of A Liquidity Crisis: Corporate Bonds In The Covid-19 Crisis, Xing "Alex" Zhou, Maureen O'Hara

Documents

No abstract provided.


Report On The Economic Well-Being Of U.S. Households In 2019, Featuring Supplemental Data From April 2020, Federal Reserve System: Board Of Governors May 2020

Report On The Economic Well-Being Of U.S. Households In 2019, Featuring Supplemental Data From April 2020, Federal Reserve System: Board Of Governors

Documents

No abstract provided.


The Mortgage Market Has Caught The Virus, Mark Zandi, Laurie Goodman, Bob Ryan, Jim Parrott May 2020

The Mortgage Market Has Caught The Virus, Mark Zandi, Laurie Goodman, Bob Ryan, Jim Parrott

Documents

No abstract provided.


Money And Credit - March 2020, Bank Of England/Central Bank Of The United Kingdom May 2020

Money And Credit - March 2020, Bank Of England/Central Bank Of The United Kingdom

Documents

No abstract provided.


Minutes Of The Monetary Policy Meeting On March 16, 2020, Bank Of Japan/Central Bank Of Japan May 2020

Minutes Of The Monetary Policy Meeting On March 16, 2020, Bank Of Japan/Central Bank Of Japan

Documents

No abstract provided.


When Selling Becomes Viral: Disruptions In Debt Markets In The Covid-19 Crisis And The Fed's Response, Valentin Haddad, Alan Moreira, Tyler Muir May 2020

When Selling Becomes Viral: Disruptions In Debt Markets In The Covid-19 Crisis And The Fed's Response, Valentin Haddad, Alan Moreira, Tyler Muir

Documents

No abstract provided.


Federal Reserve Announces Changes To Main Street Lending Program, Mallory Dreyer, Kaleb Nygaard May 2020

Federal Reserve Announces Changes To Main Street Lending Program, Mallory Dreyer, Kaleb Nygaard

Documents

No abstract provided.


Ppp Rules Changed To Better Target Funds, Mallory Dreyer, Kaleb Nygaard May 2020

Ppp Rules Changed To Better Target Funds, Mallory Dreyer, Kaleb Nygaard

Documents

No abstract provided.


Federal Reserve Expands Access To Paycheck Protection Program Lending Facility To Non-Depository Institution Lenders, Kaleb Nygaard May 2020

Federal Reserve Expands Access To Paycheck Protection Program Lending Facility To Non-Depository Institution Lenders, Kaleb Nygaard

Documents

No abstract provided.


Uk Announces New 100% Loan Guarantee Program Targeted At Smallest Businesses, Kaleb Nygaard May 2020

Uk Announces New 100% Loan Guarantee Program Targeted At Smallest Businesses, Kaleb Nygaard

Documents

No abstract provided.


Competition And Public Information: A Note, Dirk Bergemann, Benjamin Brooks, Stephen Morris May 2020

Competition And Public Information: A Note, Dirk Bergemann, Benjamin Brooks, Stephen Morris

Cowles Foundation Discussion Papers

We study price discrimination in a market in which two firms engage in Bertrand competition. Some consumers are contested by both firms, and other consumers are “captive” to one of the firms. The market can be divided into segments, which have different relative shares of captive and contested consumers. It is shown that the revenue-maximizing segmentation involves dividing the market into “nested” markets, where exactly one firm may have captive consumers.


Ssm And The Srb Accountability At European Level: Room For Improvements?, Jonathan Zeitlin, Filipe Brito Bastos May 2020

Ssm And The Srb Accountability At European Level: Room For Improvements?, Jonathan Zeitlin, Filipe Brito Bastos

Documents

No abstract provided.


Provincial Bond Purchase Program - Term Sheet, Bank Of Canada/Central Bank Of Canada/La Banque Du Canada Apr 2020

Provincial Bond Purchase Program - Term Sheet, Bank Of Canada/Central Bank Of Canada/La Banque Du Canada

Documents

No abstract provided.


Federal Reserve Board Announces It Is Expanding The Scope And Eligibility For The Main Street Lending Program, Federal Reserve System: Board Of Governors Apr 2020

Federal Reserve Board Announces It Is Expanding The Scope And Eligibility For The Main Street Lending Program, Federal Reserve System: Board Of Governors

Documents

No abstract provided.


Exchange Stabilization Fund - Statement Of Financial Position (As Of June 30, 2020), United States: Department Of The Treasury Apr 2020

Exchange Stabilization Fund - Statement Of Financial Position (As Of June 30, 2020), United States: Department Of The Treasury

Documents

No abstract provided.


Federal Reserve Expands Access To Its Paycheck Protection Program Liquidity Facility (Ppplf) To Additional Lenders, And Expands The Collateral That Can Be Pledged, Federal Reserve System: Board Of Governors Apr 2020

Federal Reserve Expands Access To Its Paycheck Protection Program Liquidity Facility (Ppplf) To Additional Lenders, And Expands The Collateral That Can Be Pledged, Federal Reserve System: Board Of Governors

Documents

No abstract provided.


Mslp Faqs As Of April 30, 2020, Federal Reserve System: Federal Reserve Bank Of Boston Apr 2020

Mslp Faqs As Of April 30, 2020, Federal Reserve System: Federal Reserve Bank Of Boston

Documents

No abstract provided.


Federal Reserve Board Announces It Is Expanding The Scope And Eligibility For The Main Street Lending Program, Federal Reserve System: Board Of Governors Apr 2020

Federal Reserve Board Announces It Is Expanding The Scope And Eligibility For The Main Street Lending Program, Federal Reserve System: Board Of Governors

Documents

No abstract provided.