Children and Credit Constraints by T.H. Jorgensen

Quantitative Economics, Volume 7, Issue 3 (November 2016)

Euler Equation Estimation: Children And Credit Constraints

Thomas H. Jørgensen

Abstract

Conventional estimators based on the consumption Euler equation, intensively used in studies of intertemporal consumption behavior, produce biased estimates of the effect of children on the marginal utility of consumption if consumers face credit constraints. As a more constructive contribution, I propose a tractable approach to obtaining bounds on the effect of children on the marginal utility of consumption. I estimate these bounds using the Panel Study of Income Dynamics and find that conventional estimators yield point estimates that are above the upper bound. Children might, thus, not increase the marginal utility of consumption as much as previously assumed.

Consumption Euler equation estimation credit constraints children demographics life cycle bounds D12 D14 D91

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Separability and aggregation of equivalence relations

Dimitrov, D., Marchant, T. & Mishra, D., Econ Theory (2012) 51: 191. doi:10.1007/s00199-011-0601-2

Abstract

 We provide axiomatic characterizations of two natural families of rules for aggregating equivalence relations: the family of join aggregators and the family of meet aggregators. The central conditions in these characterizations are two separability axioms. Disjunctive separability, neutrality, and unanimity characterize the family of join aggregators. On the other hand, conjunctive separability and unanimity characterize the family of meet aggregators. We show another characterization of the family of meet aggregators using conjunctive separability and two Pareto axioms, Pareto+ and Pareto−. If we drop Pareto−, then conjunctive separability and Pareto+ characterize the family of meet aggregators along with a trivial aggregator.


 Fishburn, P.C. & Rubinstein, A. Journal of Classification (1986) 3: 61. doi:10.1007/BF01896812


These papers are related with Cho and Ju (2016).