Estimating Excess Sensitivity And Habit Persistence In Consumption Using Greenbook Forecast As An Instrument
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| Author | : Vipul Bhatt |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2020 |
| Genre | : |
| ISBN | : |
In this paper, we revisit the issue of excess sensitivity of consumption to income and address the weak instrument problem that is well documented in this literature. Using quarterly data for the US economy, we first highlight the weak instrument problem by showing that the use of conventional instruments tends to overestimate the share of rule-of-thumb consumers. To address this weak instrument problem, we propose a new instrument for endogenous disposable income growth in the consumption function, namely, the Greenbook forecast of real disposable income growth. We show that this instrument encompasses the information contained in the conventional set of instruments, and is a superior predictor of income growth. We find that using our proposed instrument ameliorates the weak instrument problem and provides a much smaller estimate for the rule-of-thumb consumers. We also extend our empirical framework to allow for habit persistence and provide an estimate for this important parameter of the consumption function. Finally, we use a time-varying specification of consumption function that allows for endogenous regressors, and document a decline in the share of rule-of-thumb consumers and a rise in the habit-persistence parameter in the US over our sample period.
| Author | : Vipul Bhatt |
| Publisher | : |
| Total Pages | : 35 |
| Release | : 2017 |
| Genre | : |
| ISBN | : |
In this paper, we revisit the issue of excess sensitivity of consumption to income and address the weak instrument problem that is well documented in this literature. Using quarterly data for the U.S. economy, we first highlight the weak instrument problem by showing that the use of conventional instruments tends to overestimate the share of rule-of-thumb consumers. To address this weak instrument problem, we propose a new instrument for endogenous disposable income growth in the consumption function, namely, the Greenbook forecast of real disposable income growth. We show that this instrument encompasses the information contained in the conventional set of instruments, and is a superior predictor of income growth. We find that using our proposed instrument ameliorates the weak instrument problem and provides a much smaller estimate for the rule-of-thumb consumers. We also extend our empirical framework to allow for habit persistence and provide an estimate for this important parameter of the consumption function. Finally, we use a time-varying specification of consumption function that allows for endogenous regressors, and document a decline in the share of rule-of-thumb consumers and a rise in the habit-persistence parameter in the U.S. over our sample period. We find that an increase in credit growth and supplementary income benefits are negatively correlated with share of rule-of-thumb consumers, whereas they are positively correlated with habit persistence parameter.
| Author | : Great Britain. Treasury |
| Publisher | : Stationery Office |
| Total Pages | : 114 |
| Release | : 2003 |
| Genre | : Business & Economics |
| ISBN | : 9780115601071 |
This new edition incorporates revised guidance from H.M Treasury which is designed to promote efficient policy development and resource allocation across government through the use of a thorough, long-term and analytically robust approach to the appraisal and evaluation of public service projects before significant funds are committed. It is the first edition to have been aided by a consultation process in order to ensure the guidance is clearer and more closely tailored to suit the needs of users.
| Author | : Gavin Towler |
| Publisher | : Elsevier |
| Total Pages | : 1321 |
| Release | : 2012-01-25 |
| Genre | : Technology & Engineering |
| ISBN | : 0080966608 |
Chemical Engineering Design, Second Edition, deals with the application of chemical engineering principles to the design of chemical processes and equipment. Revised throughout, this edition has been specifically developed for the U.S. market. It provides the latest US codes and standards, including API, ASME and ISA design codes and ANSI standards. It contains new discussions of conceptual plant design, flowsheet development, and revamp design; extended coverage of capital cost estimation, process costing, and economics; and new chapters on equipment selection, reactor design, and solids handling processes. A rigorous pedagogy assists learning, with detailed worked examples, end of chapter exercises, plus supporting data, and Excel spreadsheet calculations, plus over 150 Patent References for downloading from the companion website. Extensive instructor resources, including 1170 lecture slides and a fully worked solutions manual are available to adopting instructors. This text is designed for chemical and biochemical engineering students (senior undergraduate year, plus appropriate for capstone design courses where taken, plus graduates) and lecturers/tutors, and professionals in industry (chemical process, biochemical, pharmaceutical, petrochemical sectors). New to this edition: Revised organization into Part I: Process Design, and Part II: Plant Design. The broad themes of Part I are flowsheet development, economic analysis, safety and environmental impact and optimization. Part II contains chapters on equipment design and selection that can be used as supplements to a lecture course or as essential references for students or practicing engineers working on design projects. New discussion of conceptual plant design, flowsheet development and revamp design Significantly increased coverage of capital cost estimation, process costing and economics New chapters on equipment selection, reactor design and solids handling processes New sections on fermentation, adsorption, membrane separations, ion exchange and chromatography Increased coverage of batch processing, food, pharmaceutical and biological processes All equipment chapters in Part II revised and updated with current information Updated throughout for latest US codes and standards, including API, ASME and ISA design codes and ANSI standards Additional worked examples and homework problems The most complete and up to date coverage of equipment selection 108 realistic commercial design projects from diverse industries A rigorous pedagogy assists learning, with detailed worked examples, end of chapter exercises, plus supporting data and Excel spreadsheet calculations plus over 150 Patent References, for downloading from the companion website Extensive instructor resources: 1170 lecture slides plus fully worked solutions manual available to adopting instructors
| Author | : William C. Brainard |
| Publisher | : Brookings Institution Press |
| Total Pages | : 308 |
| Release | : 2010-12 |
| Genre | : Business & Economics |
| ISBN | : 9780815706731 |
Subscribe to "Brookings Papers on Economic Activity" For almost thirty years, Brookings Papers on Economic Activity (BPEA) has provided academic and business economists, government officials, and members of the financial and business communities with timely research of current economic issues.
| Author | : Ben S. Bernanke |
| Publisher | : MIT Press |
| Total Pages | : 398 |
| Release | : 2002 |
| Genre | : Business & Economics |
| ISBN | : 9780262523233 |
Current issues in macroeconomics.
| Author | : David Butler |
| Publisher | : IWA Publishing |
| Total Pages | : 378 |
| Release | : 2005-12-01 |
| Genre | : Science |
| ISBN | : 1843390787 |
A common characteristic of water demand in urban areas worldwide is its inexorable rise over many years; continued growth is projected over coming decades. The chief influencing factors are population growth and migration, together with changes in lifestyle, demographic structure and the possible effects of climate change (the detailed implications of climate change are not yet clear, and anyway will depend on global location, but must at least increase the uncertainty in security of supply). This is compounded by rapid development, creeping urbanization and, in some places, rising standards of living. Meeting this increasing demand from existing resources is self-evidently an uphill struggle, particularly in water stressed/scarce regions in the developed and developing world alike. There are typically two potential responses: either "supply-side" (meeting demand with new resources) or "demand-side" (managing consumptive demand itself to postpone or avoid the need to develop new resources). There is considerable pressure from the general public, regulatory agencies, and some governments to minimise the impacts of new supply projects (e.g. building new reservoirs or inter-regional transfer schemes), implying the emphasis should be shifted towards managing water demand by best utilising the water that is already available. Water Demand Management has been prepared by the academic, government and industry network WATERSAVE. The concept of the book is to assemble a comprehensive picture of demand management topics ranging from technical to social and legal aspects, through expert critical literature reviews. The depth and breadth of coverage is a unique contribution to the field and the book will be an invaluable information source for practitioners and researchers, including water utility engineers/planners, environmental regulators, equipment and service providers, and postgraduates. Contents Water consumption trends and demand forecasting techniques The technology, design and utility of rainwater catchment systems Understanding greywater treatment Water conservation products Water conservation and sewerage systems An introduction to life cycle and rebound effects in water systems Developing a strategy for managing losses in water distribution networks Demand management in developing countries Drivers and barriers for water conservation and reuse in the UK The economics of water demand management Legislation and regulation mandating and influencing the efficient use of water in England and Wales Consumer reactions to water conservation policy instruments Decision support tools for water demand management
| Author | : Transportation Research Board |
| Publisher | : Transportation Research Board |
| Total Pages | : 269 |
| Release | : 2005-01-11 |
| Genre | : Business & Economics |
| ISBN | : 0309094984 |
TRB Special Report 282: Does the Built Environment Influence Physical Activity? Examining the Evidence reviews the broad trends affecting the relationships among physical activity, health, transportation, and land use; summarizes what is known about these relationships, including the strength and magnitude of any causal connections; examines implications for policy; and recommends priorities for future research.
| Author | : Richard R. Lindsey |
| Publisher | : John Wiley & Sons |
| Total Pages | : 406 |
| Release | : 2011-01-11 |
| Genre | : Business & Economics |
| ISBN | : 1118044754 |
Praise for How I Became a Quant "Led by two top-notch quants, Richard R. Lindsey and Barry Schachter, How I Became a Quant details the quirky world of quantitative analysis through stories told by some of today's most successful quants. For anyone who might have thought otherwise, there are engaging personalities behind all that number crunching!" --Ira Kawaller, Kawaller & Co. and the Kawaller Fund "A fun and fascinating read. This book tells the story of how academics, physicists, mathematicians, and other scientists became professional investors managing billions." --David A. Krell, President and CEO, International Securities Exchange "How I Became a Quant should be must reading for all students with a quantitative aptitude. It provides fascinating examples of the dynamic career opportunities potentially open to anyone with the skills and passion for quantitative analysis." --Roy D. Henriksson, Chief Investment Officer, Advanced Portfolio Management "Quants"--those who design and implement mathematical models for the pricing of derivatives, assessment of risk, or prediction of market movements--are the backbone of today's investment industry. As the greater volatility of current financial markets has driven investors to seek shelter from increasing uncertainty, the quant revolution has given people the opportunity to avoid unwanted financial risk by literally trading it away, or more specifically, paying someone else to take on the unwanted risk. How I Became a Quant reveals the faces behind the quant revolution, offering you?the?chance to learn firsthand what it's like to be a?quant today. In this fascinating collection of Wall Street war stories, more than two dozen quants detail their roots, roles, and contributions, explaining what they do and how they do it, as well as outlining the sometimes unexpected paths they have followed from the halls of academia to the front lines of an investment revolution.
| Author | : Great Britain. Committee on Climate Change |
| Publisher | : The Stationery Office |
| Total Pages | : 514 |
| Release | : 2008 |
| Genre | : Business & Economics |
| ISBN | : 9780117039292 |
Climate change resulting from CO2 and other greenhouse gas emissions poses a huge threat to human welfare. To contain that threat, the world needs to cut emissions by about 50 per cent by 2050, and to start cutting emissions now. A global agreement to take action is vital. A fair global deal will require the UK to cut emissions by at least 80 per cent below 1990 levels by 2050. In this report, the Committee on Climate Change explains why the UK should aim for an 80 per cent reduction by 2050 and how that is attainable, and then recommends the first three budgets that will define the path to 2022. But the path is attainable at manageable cost, and following it is essential if the UK is to play its fair part in avoiding the far higher costs of harmful climate change. Part 1 of the report addresses the 2050 target. The 80 per cent target should apply to the sum of all sectors of the UK economy, including international aviation and shipping. The costs to the UK from this level of emissions reduction can be made affordable - estimated at between 1-2 per cent of GDP in 2050. In part 2, the Committee sets out the first three carbon budgets covering the period 2008-22, and examines the feasible reductions possible in various sectors: decarbonising the power sector; energy use in buildings and industry; reducing domestic transport emissions; reducing emissions of non-CO2 greenhouse gases; economy wide emissions reductions to meet budgets. The third part of the report examines wider economic and social impacts from budgets including competitiveness, fuel poverty, security of supply, and differences in circumstances between the regions of the UK.
