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Social and Behavioral Sciences Commons™
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- Interest rates (2)
- Bank credit (1)
- Costs of debt (1)
- Credit access (1)
- Debt payments (1)
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- Discrimination (1)
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- Economic stability (1)
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- Progressive personal income taxation (1)
- Relative price differences (1)
- Retirement income adequacy (1)
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- U.S. trade deficit (1)
- Value added taxes (1)
Articles 1 - 10 of 10
Full-Text Articles in Social and Behavioral Sciences
Can Progressive Taxation Contribute To Economic Development?, Christian E. Weller, Manita Rao
Can Progressive Taxation Contribute To Economic Development?, Christian E. Weller, Manita Rao
Christian Weller
Financial instability has increased for many economies in the face of greater capital mobility. Eliminating capital flows, especially portfolio investment flows, may reduce volatility, but it could also result in domestic capital constraints. To overcome this dilemma, policymakers may consider alternatives, such as progressive income taxation, that could raise domestic funds. In this paper, we combine several macro economic data sources to test the link between progressive taxation and economic stability, economic growth, inequality and fiscal policy. Based on data from 1981 to 2002, we find that progressive taxation provides policymakers with the ability to conduct countercyclical fiscal policies, which …
The Interplay Between Labor And Financial Markets: What Are The Implications For Defined Contribution Accounts?, Christian E. Weller, Jeffrey B. Wenger
The Interplay Between Labor And Financial Markets: What Are The Implications For Defined Contribution Accounts?, Christian E. Weller, Jeffrey B. Wenger
Christian Weller
The relationship between earnings, savings and retirement is well-known, however the linkage between labor market outcomes and financial market performance is generally unacknowledged. We examine the implications of the link between labor markets and financial markets for workers who save money in individual retirement accounts. Specifically, differences in labor market outcomes across groups may imply differences in the timing of investments, which may reduce savings over time for these groups compared to their counterparts. Using monthly data from the Current Population Survey (1979-2002) we generate hypothetical investment portfolios using stock and bond indices. We exploit differences across demographic groups in …
Credit Access, The Costs Of Credit And Credit Market Discrimination, Christian E. Weller
Credit Access, The Costs Of Credit And Credit Market Discrimination, Christian E. Weller
Christian Weller
Since the early 1990s, credit expanded relative to income, especially after 2001. It is hypothesized that traditionally uneven credit access and gaps in the costs of credit by demographic characteristics shrank during this period. Relying on data from the Federal Reserve’s Survey of Consumer Finance, this study looks at financial constraints, the costs of credit and a number of contributions to the costs of credit, including sources and types of loans. The results indicate that taste-based discrimination and structural discrimination may have persisted and possibly increased over time. Gaps in credit access and costs of credit have widened by race, …
Have Differences In Credit Access Diminished In An Era Of Financial Market Deregulation?, Christian E. Weller
Have Differences In Credit Access Diminished In An Era Of Financial Market Deregulation?, Christian E. Weller
Christian Weller
Over the past few decades, financial markets became increasingly deregulated and household debt expanded, sometimes rapidly. It is thus possible that greater deregulation led to improved credit access for typically underserved groups, such as minorities and low-income families, relative to their counterparts. Credit access is measured here by loan denials, discouraged applications, and costs of credit. Based on data from the Federal Reserve’s Survey Consumer Finances and using multivariate tests, there is no clear trend, though, towards equalization of credit access from 1989 to 2004. Specifically, gaps in loan denials and discouraged applications only improved for Hispanics relative to Whites. …
Could International Labor Rights Play A Role In U.S. Trade?, Christian E. Weller
Could International Labor Rights Play A Role In U.S. Trade?, Christian E. Weller
Christian Weller
During its last complete business cycle, from 2001 to 2007, the United States experienced unsustainably high trade deficits. Policymakers are considering a number of measures to avoid a recurrence of such large external imbalances. One such measure is the promotion of better labor rights around the world. Proponents argue that higher labor standards would boost U.S. exports by increasing income growth abroad and reduce U.S. imports by shrinking international price differences. Opponents of such a policy move argue that it is disguised protectionism that will impede trade and harm living standards in the United States and abroad. In this paper, …
Public Policy Options To Build Wealth For America’S Middle Class, Christian E. Weller, Amy Helburn
Public Policy Options To Build Wealth For America’S Middle Class, Christian E. Weller, Amy Helburn
Christian Weller
No abstract provided.
Desperate Vs. Deadbeat: Can We Quantify The Effect Of The Bankruptcy Abuse Prevention And Consumer Protection Act Of 2005?, Christian Weller, Bernard J. Morzuch, Amanda Logan
Desperate Vs. Deadbeat: Can We Quantify The Effect Of The Bankruptcy Abuse Prevention And Consumer Protection Act Of 2005?, Christian Weller, Bernard J. Morzuch, Amanda Logan
Christian Weller
No abstract provided.
Prudent Investors: The Asset Allocation Of Public Pension Plans, Christian E. Weller, Jeffrey B. Wenger
Prudent Investors: The Asset Allocation Of Public Pension Plans, Christian E. Weller, Jeffrey B. Wenger
Christian Weller
After 2000, the vast majority of defined benefit (DB) pension plans encountered a decrease in their funding ratios, largely due to a drop in asset prices. It is possible that public sector pension plans may have acted imprudently by chasing returns, once they encountered underfunding. We identify four indicators for DB plans’ imprudent investment behavior: no portfolio rebalancing, employer conflicts of interest, trustee conflicts of interest, and failure to implement best investment practices. To see if public sector pension plans rebalance their portfolios, we use data from the Federal Reserve’s Flow of Funds, dating from 1952 to 2007. To test …
Changes In Homeowners’ Financial Security During The Recent Housing And Mortgage Boom, Christian Weller, Kate Sabatini
Changes In Homeowners’ Financial Security During The Recent Housing And Mortgage Boom, Christian Weller, Kate Sabatini
Christian Weller
From the late 1990s through 2005, the U.S. experienced an unprecedented housing boom, which boosted the asset values of many families. This meant, on the one hand, that families with homes had more collateral to borrow against, but it also meant that new home buyers needed to take out larger mortgages to afford a home. After 2001, the U.S. saw a sharp acceleration in the growth rate of household debt. Using data from the Survey of Consumer Finances conducted by the Federal Reserve, which we supplement with data from the Flow of Funds Accounts generated by the Federal Reserve, we …
Did Retirees Save Enough To Compensate For The Increase In Individual Risk Exposure?, Christian E. Weller
Did Retirees Save Enough To Compensate For The Increase In Individual Risk Exposure?, Christian E. Weller
Christian Weller
The United States experienced an unprecedented financial crisis after 2007. This paper analyzes if retirees had enough wealth built up to weather the financial risks that materialized in the crisis. Financial risks associated with saving for retirement had increasingly shifted onto individuals away from the public and employers during the decades before the crisis. This growing personal responsibility should have gone along with more saving and less risk taking. I use data from the Federal Reserve’s triennial Survey of Consumer Finances to first define an income threshold for retirees, specifically whether annuity income is greater than twice the poverty line …