VGSF - WU Vienna - LC

Russell Cooper, European University Institute

Campus WU D3.0.225 11:00 - 12:30

Organizer VGSF

As part of the ser­ies of the "Fin­ance Re­search Sem­inar", VGSF wel­comes Rus­sell Cooper from the European Uni­versity In­sti­tute to present his re­search pa­per.
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MPC Het­ero­gen­eity in Europe: Sources and Policy Im­plic­a­tions

This pa­per stud­ies house­hold fin­an­cial choices in four EU coun­tries. The es­tim­a­tion of key para­met­ers uses a sim­u­la­tion method of mo­ments ap­proach to match mo­ments on as­set mar­ket par­ti­cip­a­tion rates, port­fo­lio shares and wealth to in­come ra­tios by edu­ca­tion group and coun­try. The policy func­tions based upon the es­tim­a­tion are used to char­ac­ter­ize the dis­tri­bu­tions of the mar­ginal propensity to con­sume across house­holds for each of the four coun­tries. The dis­tri­bu­tions are dir­ectly re­lated to the pres­ence of hand-to-­mouth house­holds. With the es­tim­ated dis­tri­bu­tions, mon­et­ary policy, op­er­at­ing through its ef­fects on house­hold in­come and as­set mar­ket re­turns, will have a dif­fer­en­tial im­pact on in­di­vidu­als within and across coun­tries.

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