Consumption and labor supply with partial insurance: an analytical framework

This paper studies consumption and labor supply in a model where agents have partial insurance and face risk and initial heterogeneity in wages and preferences. Equilibrium allocations and variances and covariances of wages, hours and consumption are solved for analytically. We prove that all parameters of the structural model are identified given panel data on wages and hours, and cross-sectional data on consumption. The model is estimated on US data. Second moments involving hours and consumption show that the rise in wage dispersion in the 1970s was effectively insured by households, while the rise in the 1980s was not.Wages ; Consumption (Economics)

Quantitative macroeconomics with heterogeneous households

Macroeconomics is evolving from the study of aggregate dynamics to the study of the dynamics of the entire equilibrium distribution of allocations across individual economic actors. This article reviews the quantitative macroeconomic literature that focuses on household heterogeneity, with a special emphasis on the “standard” incomplete markets model. We organize the vast literature according to three themes that are central to understanding how inequality matters for macroeconomics. First, what are the most important sources of individual risk and cross-sectional heterogeneity? Second, what are individuals’ key channels of insurance? Third, how does idiosyncratic risk interact with aggregate risk?Macroeconomics ; Insurance

Insurance and Opportunities: A Welfare Analysis of Labor Market Risk

Using a model with constant relative risk-aversion preferences, endogenous labor supply and partial insurance against idiosyncratic wage risk, we provide an analytical characterization of three welfare effects: (a) the welfare effect of a rise in wage dispersion, (b) the welfare gain from completing markets, and (c) the welfare effect from eliminating risk. Our analysis reveals an important trade-off for these welfare calculations. On the one hand, higher wage uncertainty increases the cost associated with missing insurance markets. On the other hand, greater wage dispersion presents opportunities to raise aggregate productivity by concentrating market work among more productive workers. Our welfare effects can be expressed in terms of the underlying parameters defining preferences and wage risk, or alternatively in terms of changes in observable second moments of the joint distribution over individual wages, consumption and hours.

Experimental observation of the 'Tilting Mode' of an array of vortices in a dilute Bose-Einstein Condensate

We have measured the precession frequency of a vortex lattice in a Bose-Einstein condensate of 87Rb atoms. The observed mode corresponds to a collective motion in which all the vortices in the array are tilted by a small angle with respect to the z-axis (the symmetry axis of the trapping potential) and synchronously rotate about this axis. This motion corresponds to excitation of a Kelvin wave along the core of each vortex and we have verified that it has the handedness expected for such helical waves, i.e. precession in the opposite sense to the rotational flow around the vortices. The experimental method used to excite this collective mode closely resembles that used to study the scissors mode and excitation of the scissors mode for a condensate containing a vortex array was used to determine the angular momentum of the system. Indeed, the collective tilting of the array that we have observed has previously been referred to as an `anomalous' scissors mode.Comment: 5 pages, 7 figures to be published in PR

Abandoning the idealized white subject of legal feminism: A manifesto for silence in a Lusophone register

Through an account of white feminisms and white privilege, this article examines the tensions between local and international knowledge frames. The article considers the possibility of a feminist approach to global constitutionalism and argues for a twofold critique: first, a feminist interrogation of the dominance of a specifically male history of Western and Anglo-European knowledge frames; and second, a self-critique within feminist approaches to global legal regimes that acknowledges the complicity of mainstream feminist tools in the racist histories of knowledge production. To this end, the article examines the space of gender expertise to explore how this can be both an aperture for plural feminist encounters and a refinement of diverse feminist approaches into a form digestible by the contours of international institutions. To explore alternative, decolonized encounters, the article centres Lusophone African feminist silence and action in Luanda, the capital of Angola. The article explores how Angolan gender relations, informal labour and histories of protest unsettle the frame of a feminist manifesto, to argue for a place for active silence as a methodology for undoing the status quo of global constitutional expectations of how knowledge arrives at the global and transnational levels

The Cross-Sectional Implications of Rising Wage Inequality in the United States

This paper explores the implications of the recent sharp rise in US wage inequality for welfare and the cross-sectional distributions of hours worked, consumption and earnings. From 1967 to 1996 cross-sectional dispersion of earnings increased more than wage dispersion, due to a rise in the correlation between wages and hours worked. Over the same period, inequality in hours worked remained roughly constant, and the dispersion in consumption and wealth increased only modestly. Using data from the PSID, we decompose the observed rise in wage inequality into changes in the variance of permanent, persistent and transitory shocks. With this changing wage process as the only primitive, we show that a calibrated overlapping-generations model with incomplete markets can account for these trends in cross-sectional US data. We also investigate the welfare costs of the rise in wage inequality: the ex-ante loss is equivalent to a five percent decline in lifetime income for the worst-affected cohorts

Stable isotopic analysis of prehistoric human diet in the Mariana Islands, western Pacific

Stable isotopic analyses of human and faunal bones provide a valuable means to differentiate marine and terrestrial food use in prehistoric tropical island environments (Keegan and DeNiro 1988; McGovern-Wilson and Quinn 1996; Ambrose et al. 1997). Because stable carbon and nitrogen isotope values in bone collagen are quantitatively related to the isotopic composition of ingested foods (Schoeninger and Moore 1992; Pate 1994), isotopic analyses of archaeological human bone may provide quantitative information about past diet that enhances qualitative data derived from artefacts and floral and faunal remains

The Macroeconomic Implications of Rising Wage Inequality in the United States

In recent decades, the US wage structure has been transformed by a rising college premium, a narrowing gender gap, and increasing persistent and transitory residual wage dispersion. This paper explores the implications of these changes for cross-sectional inequality in hours worked, earnings and consumption, and for welfare. The framework for the analysis is an incomplete-markets overlapping-generations model in which individuals choose education and form households, and households choose consumption and intra-family time allocation. An explicit production technology underlies equilibrium prices for labor inputs differentiated by gender and education. The model is parameterized using micro data from the PSID, the CPS and the CEX. With the changing wage structure as the only primitive force, the model can account for the key trends in cross-sectional US data. We also assess the role played by education, labor supply, and saving in providing insurance against shocks, and in exploiting opportunities presented by changes in the relative prices of different types of labor.