Alexandros Theloudis
LISER
will give a presentation on
Consumtion Inequality across Heterogeneous Families
Abstract
What does preference heterogeneity imply for consumption inequality? This paperstudies the link from wage to consumption inequality within a lifecycle model of con-sumption and family labor supply. Its distinctive feature is that households have generalheterogeneous preferences over consumption and labor supply. The paper shows iden-tification of the joint distribution of unobserved household preferences separately fromthe observed distributions of incomes and outcomes. Estimation on data from the PanelStudy of Income Dynamics in the US reveals substantial unexplained heterogeneity inconsumption preferences but little unexplained heterogeneity in labor supply preferences.Consumption preference heterogeneity accounts for about a third of consumption inequal-ity in recent years and implies a distribution of partial insurance of wage shocks.
Meeting ID: 972 2300 1437
Access Code: 926504