http://hdl.handle.net/10400.3/1121 2018-10-13T12:34:17Z http://hdl.handle.net/10400.3/3315 Título: Term and equity premium in economies with habit formation Autor: Budría, Santiago; Díaz, Antonia Resumo: In this paper we investigate the size of the risk premium and the term premium in a representative agent exchange model economy where households preferences are subject to habit formation. As a novel feature, we develop theoretical measures for risk premium and term premium that can be used even when the consumption growth process is serially autocorrelated. We find that habit formation increases risk aversion significantly but increases much more the aversion to variations of consumption across dates. This induces a substantial increase in the precautionary demand of short term assets and a significant fall in the precautionary demand of long term assets. As a result, the term premium increases substantially with habit formation. Next we calibrate our model economy and examine the quantitative predictions of our theoretical measures of equity premium, risk premium and term premium. In line with previous literature, we show that it is possible to find a reasonable calibration for which the equity premium is that observed in the data. However, we find that around 70 percent of the equity premium is just term premium. That is, a very large fraction of the increase in the equity premium is due to the asymmetric effect that habit formation has on the precautionary demand of an asset depending on its maturity. 2006-07-01T00:00:00Z http://hdl.handle.net/10400.3/3314 Título: Schooling and the distribution of wages in the European private and public sectors Autor: Budría, Santiago Resumo: International research has shown that schooling enhances within-groups wage dispersion. This assessment is typically based on private sector data and, up to date, the inequality implications of schooling have not been documented for the public sector. This paper uses recent data from eight European countries to explicitly take into account differences between the private and public sectors. Using quantile regression, the paper describes the effects of schooling on the location and shape of the conditional wage distribution in each sector. While the average impact of schooling on wages is similar across sectors, the impact of schooling on within-groups dispersion is found to be substantially larger in the private sector than in the public sector. This finding warns that the effects of the European educational expansion on overall within-groups dispersion may be lower than previously thought. 2006-07-01T00:00:00Z http://hdl.handle.net/10400.3/3313 Título: Teaching Keynes's principle of effective demand and chapter 19 Autor: Andini, Corrado Resumo: This paper extends a model proposed by Dalziel and Lavoie (2003) and discuss the main difference between Keynes and the neoclassical theory in the extended framework: the consequences of money-wage flexibility. 2006-04-01T00:00:00Z http://hdl.handle.net/10400.3/3312 Título: Can over-education account for the positive association between education and within-groups wage inequality? Autor: Budría, Santiago Resumo: International evidence shows that conditional wage dispersion increases as we move towards more educated individuals. This paper asks whether over-education accounts for this fact. The answer is a resounding 'no'. 2006-02-01T00:00:00Z