Consumption, Working Hours, and Wealth Determination in a Life Cycle Model

Naohito Abe, Noriko Inakura and Tomoaki Yamada
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Naohito Abe: Hitotsubashi University
Noriko Inakura: Japan Center for Economic Research

No 07-E-14, Bank of Japan Working Paper Series from Bank of Japan

Abstract: This paper presents an empirical analysis of a life cycle model. We incorporate labor supply and family structure into the standard precautionary savings model and estimate structural parameters based on the moment conditions for the life cycle profiles of consumption, working hours, and wealth accumulation. Our empirical analyses with Japanese household data reveal that consideration of both family structure and idiosyncratic shocks are crucial in modeling consumption and working hours profiles simultaneously under plausible parameter values.

Keywords: Life Cycle; Consumption; Asset Accumulation; Labor Supply; Structural Estimation (search for similar items in EconPapers)
JEL-codes: C15 D12 E21 (search for similar items in EconPapers)
Date: 2007-06
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:boj:bojwps:07-e-14

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