Topics in dynamic macroeconomics [Elektronische Ressource] / vorgelegt von Nikolas Moritz Kuhn
143 Pages
English

Topics in dynamic macroeconomics [Elektronische Ressource] / vorgelegt von Nikolas Moritz Kuhn

Downloading requires you to have access to the YouScribe library
Learn all about the services we offer

Description

olasTvopicsderinDipl.haftenersit?teconomicsvInauguraldissertationw.zurKuhnErlangungandesUnivakMannheimorgelegthenonGradesVDoktorNikderMoritzWirtschenDatumDr.derKaghKrebs,ung:t:08.02.2010Ludwigmher:11.03.2010Prof.Ph.D.ToreferenomProf.Krebs,AlexanderPh.D.TReferendert:?ndlicProf.Pr?fung:TiiomgratefullyAIlastknoewledgemenmetseenFirstpresenofrespall,whoIinovwtheeofaerdeepofdebtjorofouldgratitudeintoandmoyadvisoryTyomyKrebsforforvhisandears.nandandsuppthatortts,duringFinallythethankproysofofherwritingMoritzthisandthesis.erIears.haortvtheehasbvidedenetedCDSEavlotMannheim,fromdeeplyhisPdeepthesisknobwledgeatabooutpasteconomicshaandedbeconomicsinfromparticular.eItowvouldhalsoknolikIeetoythankalwalleenmaluableyortAlexandraoftheviiigrouptheoryandthevmemthebyersGenerousofsupptheoCentererforlastDoearsbalproStudiesbintheEcandonomicsUni-(CDSE)ersitatoftheandUnivamersitgratefulythis.ofartsMannheim.thisIhaameespeeneciallytedindebtedtoseminarsAlexandervLudwigtheasymIyvthesisaadvisorumanderforhelpfulhistsadvisesuggestionsduringthehisectivyearsleadinmaMannheimimproandemenafterwwhicards.IInacparticular,wledge.

Subjects

Informations

Published by
Published 01 January 2010
Reads 13
Language English
Document size 1 MB

olas
T
v
opics
der
in
Dipl.

haften

ersit?t
economics
v
Inauguraldissertation
w.
zur
Kuhn
Erlangung
an
des
Univ
ak
Mannheim

orgelegt
hen
on
Grades
V
Doktor
Nik
der
Moritz
Wirtsc
hen
Datum
Dr.
der
K

ag
h
Krebs,
ung:
t:
08.02.2010
Ludwig

m
her:
11.03.2010
Prof.
Ph.D.
T
oreferen
om
Prof.
Krebs,
Alexander
Ph.D.
T
Referen
der
t:
?ndlic
Prof.
Pr?fung:
T
ii
omgratefully
A
I

last
kno
e
wledgemen
me
ts
een
First
presen
of
resp
all,
who
I
in
o
v
w
the
e
of
a
er
deep
of
debt
jor
of
ould
gratitude
in
to
and
m
o
y

advisor
y
T
y
om
y
Krebs
for
for
v
his
and

ears.

n
and
and
supp
that
ort
ts,
during
Finally
the
thank
pro
ys

of
of
her
writing
Moritz
this
and
thesis.
er
I
ears.
ha
ort
v
the
e
has
b
vided
eneted
CDSE
a
v
lot
Mannheim,
from
deeply
his
P
deep
thesis
kno
b
wledge
at
ab
o
out
past
economics
ha
and
ed

b
economics

in
from
particular.
e
I
to
w
v
ould
h
also
kno
lik
I
e
e
to
y
thank
alw
all
een
m
aluable
y
ort

Alexandra
of

the
v

iii
group
theory
and

the
v
mem
the
b
y
ers
Generous
of
supp
the
o
Center
er
for
last
Do
ears

b
al
pro
Studies
b
in
the
Ec
and
onomics
Uni-
(CDSE)
ersit
at
of
the
and
Univ
am
ersit
grateful
y
this.
of
arts
Mannheim.
this
I
ha
am
e
esp
een
ecially
ted
indebted

to
seminars
Alexander
v
Ludwig
the
as
y
m
I
y
v


thesis
a
advisor
um
and
er
for
helpful
his
ts
advise
suggestions
during
the
his
ectiv
y

ears
lead
in
ma
Mannheim
impro
and
emen
afterw
whic
ards.
I
In
ac
particular,
wledge.
I
,
w
w
ould
lik
also
to
lik
m
e
family
to
has
thank
a
Philip
b
Jung
an
for
v


tably
supp
man
for
y
and
helpful
for
and

enligh
t,
ting
lo
discussions
e.
ab
Kuhn
out
economicsG(x,z,λ)
T
22
Aiy
.
agari

st
17
yle
Con
econom
.
y
.
with
.
p
of
ermanen
erties
t
and

.
sho
ks

.
ks
.
4
the
1.1
.
In
.
tro
.

.
.
.
.
.
.
Pro
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
of
.
.
.
.
.
.
.
.
.
.
.
.
.
distribution
.
.
.
.
.
CE
.
.
.
of
.
.
.
analysis
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4
.
1.2
.
The
.
mo
ofs
del
optimal
.
.
.
.
.
.
.
.
.
.
.

.
.
.
23
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
T
.
.
.
.
.
.
.
28
.
existence
.
.
.
preliminaries
.
.
.
.
.
.
.
existence
.
.
.
.
.
.
.
33
.
wing
.
.
.
.
.
35
.
t
.
tro
.
.
7
.
1.2.1
.
Agen
.
t's
38
problem
.
.
.
.
.
.
.
.
.
.
.
.
Conclusions
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
A.1
.
denitions
.
of
.
.
.
.
.
.
.
Mathematical
.
.
.
.
.
.
.
.
.
.
.
.
.
A.1.2
.
functions
.
.
.
.
8
.
1.2.2
.
Firm's
Prop
problem
equilibria
.
ts
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
A.1.4
.
.
.
.
.
.
.
.
.
.
.
.
.
25
.
ersalit
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Pro
.
for
.
a
.
.
.
.
.
A.2.1
.
.
.
.
9
.
1.2.3
.
Bequests
.
and
.
the
32
probabilit
for
y
a
of
.
death
.
.
.
.
.
.
.
.
.
.
.
.
Pro
.
b
.
ts
.
.
.
.
.
.
.
.
.
.
.
W
.
p
.
sho
.
2.1
.
.
.
.
.
.
10
.
1.2.4
.
Equilibrium
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
1.7
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
10
.
1.3
.
Individual
.
problem
20
.
Pro
.
and
.
for
.
existence
.
an
.
solution
.
.
.
.
.
.
.
.
.
.
.
A.1.1
.
preliminaries
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
22
.
Set
.

.
as
.
lattice
.
.
.
.
.
.
.
.
11
.
1.3.1
.
Characterization
.
of
A.1.3
the
erties
optimal
in
solution
e
.
1
.
ten
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
an
.
.
24
.
Prop
.
of
.
.
.
.
.
.
.
12
.
1.3.2
.
Existence
.
of
.
an
.
optimal
.
solution
.
.
.
.
.
.
.
.
.
.
.
.
.
.
A.1.5
.
ransv
.
y
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
13
A.2
1.4
ofs
Stationary
denitions
distribution
the
.
of
.
stationary
.
.
.
.
.
.
.
.
.
32
.
Mathematical
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
A.3
.
of
.
the
.
of
.
R
.
.
.
.
.
.
.
.
.
.
.
.
16
.
1.5
.
Equilibrium
.
.
.
.
.
.
.
.
.
.
.
.
A.4
.
of
.
non-binding
.
orro
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2
.
elfare
.
with
.
ermanen
.

.

.
38
.
In
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
17
.
1.6
.
Borro
.
wing
.

.
ts
.
.
.
.
.
.
.
.
.
.
.
.
i
..
2.2
.
Mo
B.1
del
.
.
.
.
.
.
.
.
B.4.3
.
.
.
.
.
.
.
.
.
.
.
.
.
66
.
.
.
.
.
3.2.1
.
.
.
.
.
.
.
.
.
.
.
.
.
B.2.3
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.
.
Conclusions
.
.
.
.
.
.
.
.
.
.
.
.
.
.
41
.
2.2.1
63
Setup
.
.
.
.
.
.
.
.
.
.
.
.
B.4
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
et
.
3.1
.
.
.
.
.

.
.
.
.
.
.
.
t
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
of
.
.
.
.
.
B.2
.
.
41
.
2.2.2
.
Equilibrium
.
.

.
.
.
.
.
.
.
.
.
v
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
p
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
B.4.1
.
.
.
.
.
.
.
.
.
prices
.
.
.
.
.
.
.

.
.
43
.
2.2.3
B.4.4
State
.
space
.

.
.
.
.
3
.
the
.
(with
.
.
.
.
.
.
.
.
.
.
.
Data
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
75
.

.
.
.
.
.
.
.
60
.
.
.
.
.
.
.
.
.
.
.
.
44
.
2.2.4
.
Calibration
.
.
.
.
elfare
.

.
.
.
.
.
.
.
.
.
.
.
y
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
63
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Risk
.
.
.
.
.
.
.
.
.
.
.
.
44
.
2.2.5
.
Equilibrium
.
allo
distribution

.
.
.
.
.
.
.
.
.
.
.
.
.
.
B.3
.
function
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
app
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
t's
.
.
.
.
46
.
2.3
.
W
.
elfare
.
analysis
.
.
.
.
Finding
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
the
.
.
.
.
.
.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
or
.
y
.
of
.

.
Jung)
.
tro
.
.
.
.
.
.
.
.
48
.
2.3.1
.
W
.
elfare
.

.
of
71
mark
and
et
.

.
.
.
.
.
.
.
.
.
.
Prop
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Unemplo
.
olatilit
.
.
.
.
.
.
.
.
48
.
2.3.2
ii
Endo
.
wmen
.
t
2.5
eect
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
61
.
W
.

.
transitory
.
risk
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
49
.
2.3.3
62
Endo
Sensitivit
wmen
analysis
t
.
econom
.
y
.
without
.
equilibrium
.
asset
.
trade
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
B.2.1
51
risk
2.3.4
.
V
.
olatilit
.
y
.
adjustmen
.
t
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
B.2.2
.
a
.
ersion
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
52
.
2.3.5
64
W
Initial
elfare
.
form
.
ula
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
64
.
Linear
.
olicy
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
65
54
Computational
2.3.6
endix
So
.

.
w
.
elfare
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
66
.
Agen
.
problem
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
B.4.2
.
equilibrium
.
.
54
.
2.3.7
.
Changes
.
in
.

.
risk
.
.
.
.
.
.
.
.
.
.
.
.
.
.
67
.
Calculate
.
transition
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
68
.
A
.
.
.
.
.
.
.
.
.
.
.
.
55
.
2.4
.
Consumption
.
resp
.
onse
.
to
.

.
sho
.

.
ks
.
.
.
.
.
.
69
.
Lab
.
mark
.
rigidit
.
and
.
transmission
.
business
.
sho
.
ks
.
Philip
.
71
.
In
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.
57
.
2.4.1
.
Insurance
.

.

.
t
.
.
.
.
.
.
.
.
.
.
.
.
.
.
3.2
.
description
.
aggregate
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
74
.

.
erties
.
.
.
.
.
.
.
.
.
.
.
.
57
.
2.4.2
.
Marginal
.
prop
.
ensit
.
y
.
to
.

.
.
.
.
.
.
3.2.2
.
ymen
.
v
.
y
.
osition
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
77
.
..
3.2.3
.
Disaggregation
Sensitivit
of
C.1.3
rings,
.
quits,
.
and
.
jobndings
.
b
.
y
t
ten
.
ure
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
79
and
3.2.4
.
Earnings
.
.
.
.
.
.
.
.
.
.
histories
.
104
.
.
.
.
.
.
.
.
.

.
106
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
ymen
.
.
.
.
.
.
.
.
.
.
.
.
.
ymen
.
.
.
119
.
.
.
.
.
thly
.
.
.
.
.
error
82
.
3.3
.
Mo
.
del
C.1.5
.
.
.
.
.
.
.
.
.
Imputation
.
.
.
.
.
.
.
.
.
.
.
.
.
106
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
ransitions
.
w
.
.
.
.
.
.
.
.
.
.
.
109
.
.
.
.
.
.
.
.
.
C.2.4
.
.
.
.
.
.
.
.
.
.
.
.
.
.
85
.
3.3.1
.

.
Results
.
.
.
.
.
.
.
.
of
.
ymen
.
.
.
.
.
.
.
.
.
Measuremen
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
106
.

.
.
.
.
.
.
.
.
89
Aggregate
3.3.2
.
Discussion
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Seasonal
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
107
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
C.2.1
.
y
.
for
.
ers
.
.
.
.
.
.
.
C.2.2
.

.
.
90
.
3.4
.
Calibration
.
.
.
.
.
.
Earnings
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
en
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
C.3
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
95
.
3.4.1
.
Results
103
.
Construction
.
mon
.
emplo
.
t
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
C.1.4
.
t
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
105
.
Earnings
.
.
.
.
.
.
.
.
.
.
.
.
96
.
3.4.2
.
T
.
ransmission
.
of
.
sho
.

.
ks
.
.
.
.
.
.
.
.
.
.
C.1.6
.
and
.
for
.
breaks
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
C.1.7
.
data
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
100
.
3.5
.
Conclusion
.
.
.
.
.
.
C.1.8
.
adjustmen
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
C.2
.
y
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
102
.
C.1
107
Data
T
.
b
.
education
.
sex
.
all
.
ork
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
107
.
Unemplo
.
t
.
osition
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
C.2.3
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
103
.
C.1.1
.
Data
.
description
.
.
.
.
111
.
T
.
ure
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
115
.
Unemplo
.
t
.
osition
.
.
.
.
.
.
.
.
.
.
103
.
C.1.2
.
Sampling
.
p
.
erio
.
d
.
and
.
sample
.

.
.
iii
..
List
.
of
.
Figures
y
2.1
.
Optimal
.

.
p
.
olicy
.
.
.
.
99
.
.
.
.
.
.
.
C.9
.
.
.
y
.
.
.
.
.
.
.
.
.
.
.
.
.
resp
.
.
.
y
.
.
.
y
.
.
.
p
.
.
.
.
.
3.3
.
.
.
.
.
.
.
.
.
for
46
.
2.2
.
Consumption
.
transition
.
paths
onse
.
.
.
.
.
.
.
100
.
.
.
.
.
.
.
101
.
er
.
.
.
.
.
111
.
GDP
.
.
.
.
.
(HP
.
.
.
.
.
.
.
.
.
.
.
.
.
for
.
.
.
.
.
.
.
.
.
.
50
.
2.3
.
Analytic
.
appro
3.4
ximation
US
and
.
n
.
umerically
.
determined
.
w
.
elfare
.
eects
.
.
.
.
Impulse
.
.
.
.
.
.
.
.
.
.
56
.
2.4
.
Marginal
.
prop
Rescaled
ensit
functions
y
.
to
.

.
.
.
.
.
.
.
.
Earnings
.
GDP
.
.
.
.
.
.
.
.
.
.
.
.
.
Earnings
.
ltered)
.
er
.
.
.
.
.
.
.
.
.

.
and
.

.
.
.
.
.
.
.
113
.
.
.
.
60
.
B.5
.
Optimal
.

.
with
84
transitory
Prediction
risk
German
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
98
.
Prediction
.
the
.
.
.
.
63
.
B.6
.
Euler
.
error
.
of
.
the
.
linear
.
appro
.
ximation
.
.
.
.
.
.
.
.
.
.
.
.
.
.
3.5
.
resp
.
functions
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
66
.
3.1
3.6
Lab
impulse
or
onse
mark
.
et
.

.
y
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
C.7
.

.
and
.
p
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
C.8
.

.
(HP
.
and
.
p
.
emplo
80
ed
3.2
.
Earnings
.
index
.

.
y
.
.
.
.
113
.
Earnings
.
y
.
ltered)
.
GDP
.
er
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
iv
.Jan1980−
Sep2004
Jan1980−Sep2004
Jan1980−Sep2004
Jan1980−Sep2004
1977−2004
.
.
.
.
C.12
.
.
.
.
.
Unemplo
.
.
.
.
.
.
.
.
.
.
.
osition
.
.
.
t
.
unemplo
.
.
.
3.9
.
.
.
.
.
b
.
.
.
.
.
.
59
.
2.4

W
.
elfare
.
eects
hmark
using
.
dieren
.
t
Calibration
scaling
.

.
.
.
.
.
.
of
.
.
.
or
.
.
.
.
.
.
.
ork
.
ymen
.
.
.
lters
.
.
.
2.1
.
.
.
.
.
.
.
.
.
.
.
.
59
84
B.5
in
Sensitivit
.
y
.
of
93
w
osition
elfare
.
eects
.
with
.
resp
.
ect
.
to
.

.
risk
.
.
.
.
.
.
.
.
.
.
states
.
.
.
.
.
.
.
ws
.
.
.
for
.
.
.
.
.
et
63
.
B.6

Sensitivit
education
y
.
of
for
inequalit
.
y
.
measures
osition
with
.
resp
.
ect
Unemplo
to
erio

List
risk
.
.
.
.
.
.
3.5
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
64
.
B.7
Unemplo
Sensitivit
olatilit
y
b
of
del
w
.
elfare
.
eects
.
with
.
resp
Mo
ect
t
to
erimen
risk
.
a
.
v
.
ersion
93
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

.
.
.
.
64
.
B.8
.
Sensitivit
.
y
.
of
.
inequalit
.
y
C.10
measures
ymen
with
.
resp
.
ect
.
to
.
risk
.
a
.
v
C.11
ersion
et
.
.
.
.
.
.
.
.
.
ork
.
sex
.
.
.
.
.
.
.
or
64
ws
B.9
.
Sensitivit
.
y
.
of
for
w
b
elfare
.
eects
.
with
C.13
resp

ect
subgroups
to
.
the
.
initial
.
distribution
109
.
t
.
dieren
.
.
.
.
.
.
.
.
.
109
.
t
65
the
B.10
arametrization
Sensitivit
T
y
.
of
.
inequalit
.
y
.
measures
.
with
.
resp
.
ect
81
to
Earnings
the
y
initial
.
distribution
.
.
.
.
.
.
.
.
.
.
.
65
.
3.1
.
German
.
GDP
.
and
.
pro
.

.
y
.
,
.
emplo
.
ymen
3.6
t,
ymen
and
v
lab
y
or
the
mark

et
mo
o
.
ws
.
.
.
.
.
.
.
measures
.
insurance
.
Consumption
.
2.3
.
49
3.7
.
del-based
.
ymen
.

.
exp
.
ts
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
3.8
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
96
.
Summary
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
76
.
3.2
.
US
.
GDP
.
and
97
pro
Description

non-emplo
y
t
,
.
emplo
.
ymen
.
t,
.
and
.
lab
.
or
.
mark
.
et
.
o
.
ws
.
.
.
y
105
econom
Lab
hmark
mark

o
b
45
the
.
in
.

.
et
.
mark
.
of
.

.
elfare
w
W
ers
77
y
3.3
.
Unemplo
.
ymen
.
t
.

.
osition
.
.
107
.
Lab
.
mark
.
o
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
and
.
w
.
ers
.
y
.
.
.
.
.
.
.
.
.
108
.
Unemplo
.
t
2.2
osition
.
dieren
t
.
.
.
.
.
.
.
.
.
.
.
.
110
.
Unemplo
.
t
C.14
osition
ymen
efore

after
for
German
t
.
.
.
.
110
.
.
.
.
.
.
.
.
.
.
.
.
.
.
C.15
.
ymen
.

.
for
.
p
.
d
.
P
.
ables
.
of
.
.
.
.
.
.
.
.
.
.
.
.
.
.
79
.
3.4
C.16
T
ymen
en

ure
b
on
and
the
the
job

.
.
.
.
.
v
.1977−2004
Jan1980−Sep2004
Jan1980−Sep2004
Jan1980−Sep2004
.
.
.
.
.
112
.
C.19
.
Earnings
y

states
y
.
for
for
the
.
p
mark
erio
.
d
b
.
ers
.
using
.
.
.
et
.
(males,
.
)
.
.
.
ransition
.
w
.
Unemplo
.
.
.
C.25
.
lab
.
y
.
.
.

.
.
.
.
.
.
.
T
.
or
.
ed
.
.
.
.
.
.
.
.
.
.
.
.
112
w
C.20
full-time
Earnings
males,

osition
y
ells
(HP
.
ltered)
.
.
.
.
ransition
.
w
.
mark
.
full-time
.
w
.
and
.
.
.
.
.
p
.

.
.
.
.
.
.
.
.
.
.
.
116
.
rates
.
een
.
et
.
emplo
.
ork
.
C.18
.
.
.
.
.
.
112
.
C.21
.
Earnings
.

.
y
.
(LAD
.
estimation)
.
.
C.27
.
b
.
lab
.
states
.
y
.
ers
.
w
.
full-time
.
t
.
sp
.
.
.
.
.
.
.
.
.
.
.
.
.
115
.
T
.
rates
.
et
.
een
.
or
.
et
.
for
114
emplo
C.22
ed
Earnings
ork

(males
y
females,
for
.
full-time
.
emplo
.
y
.
ed
er
w
GDP
ork
y
ers
)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
C.26
.
ransition
.
b
.
w
.
lab
.
mark
114
states
C.23
full-time
T
y
en
w
ure
ers

Earnings
for
110
non-emplo
.
ymen
.
t
.
o
.
ws
.
.
ers
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
117
.
T
.
rates
.
et
.
een
.
or
.
et
.
for
.
emplo
.
ed
vi
ork
the
(fe-
relativ
ork
e
ed
share
emplo
with
for
resp

ect
ymen
to
C.17
short
.
)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
115
.
C.24
.
Sensitivit
118
y
of(i)
(ii)
ermanen
the
times
single
these
most
o
imp
m
ortan

t


tion
of
ets


for
dep
most
harm
p
a
eople
or
is
if

The
earned
sto
in
eld
the
and
lab
en
or
the
mark

et.
b
It
put
is
y
used
y
to
their


among
sto
other
ermanen
things,
for
all
has
kinds
risk,
of
in

b
ranging
h
from
build
ev
orkhorse
eryda
y
y
learn
exp
questions.
enditures
risk
for
prop
fo
T
o
e
d,
without

elfare.
and
in
services
prepared
lik
T
e
suces.
hair-cuts
to
to
from
long-lasting


In
go
vior
o
kno
ds
But
lik
not
e
has

the
or
reasons:
TV
lab
s.
supp

ts
t
ealying
y
es
ab
insurance
out
v
future
a
individual
economic
lab

or
dissertation,

existing
raises
a
w
del
orries
an
that
unexplored,
a
ts

ab
t
ortan
standard
viously
of
of
living
individual
has
on
to
and
b

e

adjusted
t
in
dealt
the
agen
future
uc
to
their
resp
ts
ond
some
to
o
new
b

a
situations.
y
It
do
is
risk-free

w
to
are
most
oth
p
insulate
eople
risk
that
wn,

instrumen
h

risky
this
exp
b
ectations
w
harm
and
their
as
w
saving
ell-b
happ
eing.
risk
Consequen
but
tly
This
,

if
v
they
y
had
w
the
In

literature
hoice

they
vided
w
for
ould

prefer
individual
to
In
liv
of
e
saving
in
longer
a
with
w
mark
orld
ha
where
e
they
een

fruitful
no
of


risk
for
but
In
earn
y
just
I
a
on
v
results
erage
extend

w
This
mo
risk
to
aversion
relev
leads
t,
p
et
eople
economic
to
vironmen
seek
to
insurance
more
to
out
insulate
imp

t
i.e.
Ob
their
,
standard
eects
of

living,
on
from


end
risk.
the
But
erties
in

general,
of
insurance
risk.
mark
ransitory
ets
in
for
migh
individual
b

easily
risk
with
are
y
missing
ts
or
m
at
h
least
to
not
w
p
Agen


in
aside
the
money
sense
go
that
d
not
to
ev
e
ery
for

rain

da

.
b
o
e
so,
insured.
simple
If
asset
insurance
This
mark
a
ets
households
are
able
in
smo
this
their
w
and
a

y


on
omplete
o
,
without
then

agen
ts
ts
insurance
seek
tracts.
for
economics,
other
self-insur
w
e
a
eha
ys
is
to
ell-understo
ac
d
hiev
generally
e
wn

buer
onsumption

smo
.
othing
what
.
ens
The

questions
is
of
transitory
ho
p
w
t?
households
question
adjust
attracted
their
atten

o
ving
er
b
last
eha
ears
vior
t
in
o
the
industrialized


of


on
risk
or
and
risk
of
pro
ho
broad
w
ort
m
p
uc
t
h
onen
insurance
in


tries,
and
tro
in
ely
they
the

tuitiv
still
app
ac
idea
hiev
buer
e

in
do
a
no
w
apply
orld

with
1