We conduct interrupted time-series analysis to study the impacts of national policies and two health outbreaks on e-cigarette retail sales in the U.S. We find little evidence that the national policies were associated with sustained reductions in total e-cigarettes sales. When national policies restricted the sales of certain flavors, the drop in that flavor category’s sales was offset by increases in sales in the remaining flavor categories. In contrast, after an outbreak of lung injuries apparently linked to vaping, total e-cigarette sales fell sharply, and then remained flat during COVID-19.
{"title":"The Impact of Recent National Policies and Health Outbreaks on U.S. E-Cigarette Sales","authors":"D. Kenkel","doi":"10.2139/ssrn.3920023","DOIUrl":"https://doi.org/10.2139/ssrn.3920023","url":null,"abstract":"We conduct interrupted time-series analysis to study the impacts of national policies and two health outbreaks on e-cigarette retail sales in the U.S. We find little evidence that the national policies were associated with sustained reductions in total e-cigarettes sales. When national policies restricted the sales of certain flavors, the drop in that flavor category’s sales was offset by increases in sales in the remaining flavor categories. In contrast, after an outbreak of lung injuries apparently linked to vaping, total e-cigarette sales fell sharply, and then remained flat during COVID-19.","PeriodicalId":176300,"journal":{"name":"Microeconomics: Intertemporal Consumer Choice & Savings eJournal","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126337120","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper studies the response of saving decisions to two alternative types of capital taxation, i.e., wealth tax and capital income tax. I conduct a lifecycle experiment using Amazon Mechanical Turk, where subjects make dynamic saving decisions. The subjects exhibit an overreaction to wealth taxes but not to capital income taxes: they save significantly less with introducing a wealth tax than with a financially equivalent decrease in capital returns. Furthermore, I build a parsimonious behavioral model of individual optimization to characterize this misreaction. Finally, I quantitatively illustrate the implication of misreaction bias for optimal capital taxation analysis in an overlapping generations model with the household’s misreaction bias. The results show that a household’s underreaction (overreaction) bias generates a welfare gain (loss) for the economy. The optimal capital tax rate decreases as households exhibit greater overreaction bias and vice versa.
{"title":"Overreaction to Capital Taxation in Saving Decisions","authors":"Kelin Lu","doi":"10.2139/ssrn.3880664","DOIUrl":"https://doi.org/10.2139/ssrn.3880664","url":null,"abstract":"This paper studies the response of saving decisions to two alternative types of capital taxation, i.e., wealth tax and capital income tax. I conduct a lifecycle experiment using Amazon Mechanical Turk, where subjects make dynamic saving decisions. The subjects exhibit an overreaction to wealth taxes but not to capital income taxes: they save significantly less with introducing a wealth tax than with a financially equivalent decrease in capital returns. Furthermore, I build a parsimonious behavioral model of individual optimization to characterize this misreaction. Finally, I quantitatively illustrate the implication of misreaction bias for optimal capital taxation analysis in an overlapping generations model with the household’s misreaction bias. The results show that a household’s underreaction (overreaction) bias generates a welfare gain (loss) for the economy. The optimal capital tax rate decreases as households exhibit greater overreaction bias and vice versa.","PeriodicalId":176300,"journal":{"name":"Microeconomics: Intertemporal Consumer Choice & Savings eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129162002","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
According to the concept of "fiscal discipline" public finance must be balanced, at least in the long run. The school of thought known as MMT (Modern Monetary Theory), which has been gaining attention recently, rejects this idea. However, it is often pointed out that MMT lacks the mathematical analysis used in standard economics discussions. This study aims to provide a simple theoretical and mathematical basis for the skeleton of the MMT argument, while maintaining the basics of the neoclassical microeconomic framework, such as utility maximization of consumers by means of utility function and budget constraint, and equilibrium of supply and demand of good, under perfect competition with constant returns to scale technology. Using a simple overlapping generations (OLG) model with pay-as-you-go pension system that includes economic growth due to technological progress, we will show the following results. The budget deficit equals the increase in people's savings (net of pay-as-you-go pensions), and the accumulated amount of the budget deficit equals their savings. The budget deficit is the cause and the savings is the result, not the other way around. The budget deficit is created by the government, which in turn determines income, which in turn determines the savings. The budget deficit creates the savings, not that the savings finance the budget deficit. Reducing the budget deficit will reduce savings, income, and consumption.
{"title":"Fallacy of Fiscal Discipline: Spirit of MMT Through Mathematical Analysis","authors":"Yasuhito Tanaka","doi":"10.2139/ssrn.3908281","DOIUrl":"https://doi.org/10.2139/ssrn.3908281","url":null,"abstract":"According to the concept of \"fiscal discipline\" public finance must be balanced, at least in the long run. The school of thought known as MMT (Modern Monetary Theory), which has been gaining attention recently, rejects this idea. However, it is often pointed out that MMT lacks the mathematical analysis used in standard economics discussions. This study aims to provide a simple theoretical and mathematical basis for the skeleton of the MMT argument, while maintaining the basics of the neoclassical microeconomic framework, such as utility maximization of consumers by means of utility function and budget constraint, and equilibrium of supply and demand of good, under perfect competition with constant returns to scale technology. Using a simple overlapping generations (OLG) model with pay-as-you-go pension system that includes economic growth due to technological progress, we will show the following results. The budget deficit equals the increase in people's savings (net of pay-as-you-go pensions), and the accumulated amount of the budget deficit equals their savings. The budget deficit is the cause and the savings is the result, not the other way around. The budget deficit is created by the government, which in turn determines income, which in turn determines the savings. The budget deficit creates the savings, not that the savings finance the budget deficit. Reducing the budget deficit will reduce savings, income, and consumption.","PeriodicalId":176300,"journal":{"name":"Microeconomics: Intertemporal Consumer Choice & Savings eJournal","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131553379","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Product quality is often a principal consideration in consumer decisions, yet there is no systematic treatment of such considerations in the undergraduate microeconomics core. Several recently published articles/ teaching notes address this matter by exploring the logic underlying quality considerations in consumer choice and the efficacy of markets in responding to those choices. This paper provides a brief overview and summary of the main themes of these earlier publications along with issues raised in the review process.
{"title":"The Why and How of Quality-Differentiated Demand","authors":"Charles L Adams","doi":"10.2139/ssrn.3866230","DOIUrl":"https://doi.org/10.2139/ssrn.3866230","url":null,"abstract":"Product quality is often a principal consideration in consumer decisions, yet there is no systematic treatment of such considerations in the undergraduate microeconomics core. Several recently published articles/ teaching notes address this matter by exploring the logic underlying quality considerations in consumer choice and the efficacy of markets in responding to those choices. This paper provides a brief overview and summary of the main themes of these earlier publications along with issues raised in the review process.","PeriodicalId":176300,"journal":{"name":"Microeconomics: Intertemporal Consumer Choice & Savings eJournal","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115131552","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The obesity rate has grown to epidemic proportions in the United States. Recent scientific studies suggest that excess intake of sugar-sweetened beverages (SSBs) is one of the primary contributors to weight gain. One option to address the growing obesity epidemic is to discourage SSB consumption through fiscal policies such as excising a soda tax. In this paper, we apply the Becker-Murphy model of rational addiction to present evidence that consumers are rationally addicted to soda consumption. Motivated by the evidence, we build a dynamic structural model to quantify the impact of soda taxes on soda purchases and consumption and study the role of addiction in influencing this impact. Using the parameter estimates, we conduct counterfactual analyses based on realistic policy scenarios and evaluate how different tax policies would affect soda purchases. The policy experiments indicate that imposing a soda tax of 1 cent per ounce would reduce soda consumption by 28.3% and addiction level by 31.7%. We find that 20.6% of the reduction in consumption is due to the reduction in the addiction level. We further investigate how these taxes affect consumer and social welfare through a change in addiction level. We find that addiction plays a critical role because a mild reduction in addiction level in the Berkeley tax scenario (1 cent per ounce on regular soda) benefits consumer and social welfare; however, in the Philadelphia tax scenario (1.5 cents per ounce on regular and diet sodas), the reduction in addiction level is too large, and both consumer and social welfare are worse off than before.
{"title":"Evaluating the Effect of Soda Taxes Using a Dynamic Model of Rational Addiction","authors":"Jong Yeob Kim, Masakazu Ishihara","doi":"10.2139/ssrn.3892506","DOIUrl":"https://doi.org/10.2139/ssrn.3892506","url":null,"abstract":"The obesity rate has grown to epidemic proportions in the United States. Recent scientific studies suggest that excess intake of sugar-sweetened beverages (SSBs) is one of the primary contributors to weight gain. One option to address the growing obesity epidemic is to discourage SSB consumption through fiscal policies such as excising a soda tax. In this paper, we apply the Becker-Murphy model of rational addiction to present evidence that consumers are rationally addicted to soda consumption. Motivated by the evidence, we build a dynamic structural model to quantify the impact of soda taxes on soda purchases and consumption and study the role of addiction in influencing this impact. Using the parameter estimates, we conduct counterfactual analyses based on realistic policy scenarios and evaluate how different tax policies would affect soda purchases. The policy experiments indicate that imposing a soda tax of 1 cent per ounce would reduce soda consumption by 28.3% and addiction level by 31.7%. We find that 20.6% of the reduction in consumption is due to the reduction in the addiction level. We further investigate how these taxes affect consumer and social welfare through a change in addiction level. We find that addiction plays a critical role because a mild reduction in addiction level in the Berkeley tax scenario (1 cent per ounce on regular soda) benefits consumer and social welfare; however, in the Philadelphia tax scenario (1.5 cents per ounce on regular and diet sodas), the reduction in addiction level is too large, and both consumer and social welfare are worse off than before.","PeriodicalId":176300,"journal":{"name":"Microeconomics: Intertemporal Consumer Choice & Savings eJournal","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117191384","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We examine empirically the path of consumption growth over time by looking at detailed microdata for the Spanish economy. We estimate different versions of a Euler equation linking consumption growth to the real interest rate and other socioeconomic and demographic variables. We work with two thorough datasets of microdata which compile rich economic, social and demographic information for households over two periods, 1977-1983 and 1985-1996. We find that consumption growth displays a positive and significant correlation with the interest rate, implying an intertemporal elasticity of substitution in the range 0.30-0.576, consistent with the literature. Our estimations also show that consumption growth is negatively correlated with retirement, thus suggesting a discontinuity in consumption which implies a departure from the standard life cycle model. Policy reforms which increase the level of real pensions have a positive impact on consumption. Results are robust to alternative specifications and control variables, and suggest the presence of precautionary saving over 1977-83.
{"title":"Revisiting the Consumption Puzzle: Evidence for Spain","authors":"J. Maria Labeaga Azcona, B. Sanchez-Robles","doi":"10.2139/ssrn.3891459","DOIUrl":"https://doi.org/10.2139/ssrn.3891459","url":null,"abstract":"We examine empirically the path of consumption growth over time by looking at detailed microdata for the Spanish economy. We estimate different versions of a Euler equation linking consumption growth to the real interest rate and other socioeconomic and demographic variables. We work with two thorough datasets of microdata which compile rich economic, social and demographic information for households over two periods, 1977-1983 and 1985-1996. We find that consumption growth displays a positive and significant correlation with the interest rate, implying an intertemporal elasticity of substitution in the range 0.30-0.576, consistent with the literature. Our estimations also show that consumption growth is negatively correlated with retirement, thus suggesting a discontinuity in consumption which implies a departure from the standard life cycle model. Policy reforms which increase the level of real pensions have a positive impact on consumption. Results are robust to alternative specifications and control variables, and suggest the presence of precautionary saving over 1977-83.","PeriodicalId":176300,"journal":{"name":"Microeconomics: Intertemporal Consumer Choice & Savings eJournal","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127165512","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Social media have emerged as innovative channels to disseminate quality information to consumers in a variety of service settings. Their influence has recently spread to healthcare services, for which government report cards have long been established to disclose standardized quality information to the public. Given the presence of government report cards, do social media affect consumer demand of healthcare services? If so, which quality information channel has a stronger effect? We seek to answer these questions in the context of U.S. nursing homes by studying consumer ratings on Yelp and government ratings on Nursing Home Compare, both of which adopt a five-star quality rating scale and are accessible on the Internet. We apply the method of difference-in-differences with continuous treatment intensity and instrumental variables to conduct our analysis. Using nursing home resident admissions as the proxy for consumer demand, we find that higher Yelp ratings positively influenced consumer demand, particularly the demand of Medicare-covered consumers. Furthermore, Yelp ratings exerted a stronger effect on consumer demand than government ratings. This dominance of Yelp ratings over government ratings was stronger in markets with higher Yelp penetration or markets with lower consumer education level. Although higher Yelp ratings were associated with increased net incomes and total margins, we find little evidence that nursing homes made quality improvement in response to their Yelp ratings.
{"title":"Do Social Media Dominate Government Report Cards in Influencing Nursing Home Demand?","authors":"Yuanchen Li, Lauren Xiaoyuan Lu, S. F. Lu","doi":"10.2139/ssrn.3531964","DOIUrl":"https://doi.org/10.2139/ssrn.3531964","url":null,"abstract":"Social media have emerged as innovative channels to disseminate quality information to consumers in a variety of service settings. Their influence has recently spread to healthcare services, for which government report cards have long been established to disclose standardized quality information to the public. Given the presence of government report cards, do social media affect consumer demand of healthcare services? If so, which quality information channel has a stronger effect? We seek to answer these questions in the context of U.S. nursing homes by studying consumer ratings on Yelp and government ratings on Nursing Home Compare, both of which adopt a five-star quality rating scale and are accessible on the Internet. We apply the method of difference-in-differences with continuous treatment intensity and instrumental variables to conduct our analysis. Using nursing home resident admissions as the proxy for consumer demand, we find that higher Yelp ratings positively influenced consumer demand, particularly the demand of Medicare-covered consumers. Furthermore, Yelp ratings exerted a stronger effect on consumer demand than government ratings. This dominance of Yelp ratings over government ratings was stronger in markets with higher Yelp penetration or markets with lower consumer education level. Although higher Yelp ratings were associated with increased net incomes and total margins, we find little evidence that nursing homes made quality improvement in response to their Yelp ratings.","PeriodicalId":176300,"journal":{"name":"Microeconomics: Intertemporal Consumer Choice & Savings eJournal","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121313685","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The study documented in this paper utilises a probit regression analysis to empirically investigate the key macroeconomic factors that influence credit risk in the peer-to-peer (P2P) lending market. By aggregating the United States (US) state-level data with LendingClub’s loan book covering the period from 2008–2019, this study examines multiple factors related to default risks of loans issued by P2P lending platforms. Our results show that a higher interest rate and inflation increase the probability of default in the P2P lending market. We also find that the impact of interest rate on the probability of default is significantly higher for loans with lower ratings. The study’s outcomes, by paving the way to future market best practices, are applicable to P2P lending platforms and investors in their default estimation of loans.
{"title":"Macroeconomic Determinants of Loan Delinquencies: Evidence from the US Peer-to-Peer Lending Market","authors":"Asror Nigmonov, Syed Shams, Khorshed Alam","doi":"10.2139/ssrn.3836404","DOIUrl":"https://doi.org/10.2139/ssrn.3836404","url":null,"abstract":"The study documented in this paper utilises a probit regression analysis to empirically investigate the key macroeconomic factors that influence credit risk in the peer-to-peer (P2P) lending market. By aggregating the United States (US) state-level data with LendingClub’s loan book covering the period from 2008–2019, this study examines multiple factors related to default risks of loans issued by P2P lending platforms. Our results show that a higher interest rate and inflation increase the probability of default in the P2P lending market. We also find that the impact of interest rate on the probability of default is significantly higher for loans with lower ratings. The study’s outcomes, by paving the way to future market best practices, are applicable to P2P lending platforms and investors in their default estimation of loans.","PeriodicalId":176300,"journal":{"name":"Microeconomics: Intertemporal Consumer Choice & Savings eJournal","volume":"90 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115325117","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
As approximately 70 million Baby Boomers make their way into and through retirement, increased attention is being given to how they approach retirement spending as well as what constitutes a satisfactory lifestyle in retirement. One thing is clear: There is little homogeneity when it comes to the path retirees navigate. Factors such as available assets and income in retirement, debt, health status, marital status, and even gender impact retirement needs and outcomes. What are the common profiles of retirees, and what can we learn from them? Based on a survey of 2,000 retired households aged 62 to 75 and with fewer than $1 million in financial assets, the Employee Benefit Research Institute (EBRI) developed a series of “retiree profiles” based on retirees’ financial statuses, including the levels of financial assets, annual income, debt, and homeownership, in addition to a few spending-behavior factors. From there, we identified distinguishing characteristics — demographics, retirement income, debt, health insurance, long-term-care coverage, and spending patterns — of the retiree profiles. We also examined the spending-down strategies and plans used by each type of retiree. And finally, we looked at how retirees of different types rated their retirement life satisfaction. We found: • Average Retirees were more likely to report low levels of financial assets ($99,000 or less) and intermediate levels of income (between $40,000 and $100,000 annually), at 58 and 74 percent, respectively. They were more likely to be married than not, and they reported good health status on average. Just over half of Average Retirees thought they’d saved enough or more than enough for retirement. Six in ten Average Retirees seek to maintain or grow their financial assets in retirement. When it comes to sources of income, defined benefit (DB) plans play a major role for Average Retirees, along with Social Security. Nearly half had credit card debt, and almost as many also had a car loan. Half spend $2,999 or less monthly in retirement; 1 in 5 spends less than $2,000 in retirement. One in five Average Retirees allocates 60 percent or more of their budget on their home. The majority of Average Retirees tend to believe that their standard of living in retirement is unchanged from what it was during their working years. And the Average Retiree rates their level of satisfaction as 7.8 on a scale from 1 to 10. • Affluent Retirees were more likely to have high levels of financial assets ($320,000 or more) and income ($100,000 or more annually), the majority were mortgage-free homeowners with no debt, and the majority of those with debt reported it as easily manageable. This group had the highest likelihood of being married among retirement groups, with the majority of respondents being men, primarily having a college education or higher. The majority of Affluent Retirees believe they have saved enough money for retirement, and only 1 in 3 said they plan to spend all or signific
{"title":"Retirees in Profile: Evaluating Five Distinct Lifestyles in Retirement","authors":"Z. Ebrahimi","doi":"10.2139/ssrn.3891866","DOIUrl":"https://doi.org/10.2139/ssrn.3891866","url":null,"abstract":"As approximately 70 million Baby Boomers make their way into and through retirement, increased attention is being given to how they approach retirement spending as well as what constitutes a satisfactory lifestyle in retirement. One thing is clear: There is little homogeneity when it comes to the path retirees navigate. Factors such as available assets and income in retirement, debt, health status, marital status, and even gender impact retirement needs and outcomes. What are the common profiles of retirees, and what can we learn from them? Based on a survey of 2,000 retired households aged 62 to 75 and with fewer than $1 million in financial assets, the Employee Benefit Research Institute (EBRI) developed a series of “retiree profiles” based on retirees’ financial statuses, including the levels of financial assets, annual income, debt, and homeownership, in addition to a few spending-behavior factors. From there, we identified distinguishing characteristics — demographics, retirement income, debt, health insurance, long-term-care coverage, and spending patterns — of the retiree profiles. We also examined the spending-down strategies and plans used by each type of retiree. And finally, we looked at how retirees of different types rated their retirement life satisfaction. We found: • Average Retirees were more likely to report low levels of financial assets ($99,000 or less) and intermediate levels of income (between $40,000 and $100,000 annually), at 58 and 74 percent, respectively. They were more likely to be married than not, and they reported good health status on average. Just over half of Average Retirees thought they’d saved enough or more than enough for retirement. Six in ten Average Retirees seek to maintain or grow their financial assets in retirement. When it comes to sources of income, defined benefit (DB) plans play a major role for Average Retirees, along with Social Security. Nearly half had credit card debt, and almost as many also had a car loan. Half spend $2,999 or less monthly in retirement; 1 in 5 spends less than $2,000 in retirement. One in five Average Retirees allocates 60 percent or more of their budget on their home. The majority of Average Retirees tend to believe that their standard of living in retirement is unchanged from what it was during their working years. And the Average Retiree rates their level of satisfaction as 7.8 on a scale from 1 to 10. • Affluent Retirees were more likely to have high levels of financial assets ($320,000 or more) and income ($100,000 or more annually), the majority were mortgage-free homeowners with no debt, and the majority of those with debt reported it as easily manageable. This group had the highest likelihood of being married among retirement groups, with the majority of respondents being men, primarily having a college education or higher. The majority of Affluent Retirees believe they have saved enough money for retirement, and only 1 in 3 said they plan to spend all or signific","PeriodicalId":176300,"journal":{"name":"Microeconomics: Intertemporal Consumer Choice & Savings eJournal","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120998429","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We consider a controlled school choice model where students are divided into several types such as socioeconomically advantaged and disadvantaged. The priority for a school is dependent on the type distribution of the assignment. Our model is a generalization of several models in previous studies such as those in which the priorities are based on type quotas and/or reserves. We consider the case where the priority for each school is represented by a weak order and introduce a stable and group strategy-proof mechanism. Moreover, if the priority order for each school is restricted to be a strict order, then the mechanism is also a student optimal stable one. We generalize the model allowing that the priority orders for some schools are not weak, but partial. In this case, a stable mechanism is also introduced.
{"title":"Stable Mechanisms in Controlled School Choice","authors":"Minoru Kitahara, Yasunori Okumura","doi":"10.2139/ssrn.3806916","DOIUrl":"https://doi.org/10.2139/ssrn.3806916","url":null,"abstract":"We consider a controlled school choice model where students are divided into several types such as socioeconomically advantaged and disadvantaged. The priority for a school is dependent on the type distribution of the assignment. Our model is a generalization of several models in previous studies such as those in which the priorities are based on type quotas and/or reserves. We consider the case where the priority for each school is represented by a weak order and introduce a stable and group strategy-proof mechanism. Moreover, if the priority order for each school is restricted to be a strict order, then the mechanism is also a student optimal stable one. We generalize the model allowing that the priority orders for some schools are not weak, but partial. In this case, a stable mechanism is also introduced.","PeriodicalId":176300,"journal":{"name":"Microeconomics: Intertemporal Consumer Choice & Savings eJournal","volume":"64 2","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114117228","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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