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Essays on macroeconomics

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  1. Tez No: 401155
  2. Yazar: ALİ GÜNEŞ
  3. Danışmanlar: PROF. YONGSUNG CHUNG
  4. Tez Türü: Doktora
  5. Konular: Ekonomi, Economics
  6. Anahtar Kelimeler: Belirtilmemiş.
  7. Yıl: 2013
  8. Dil: İngilizce
  9. Üniversite: University of Rochester
  10. Enstitü: Yurtdışı Enstitü
  11. Ana Bilim Dalı: Belirtilmemiş.
  12. Bilim Dalı: Belirtilmemiş.
  13. Sayfa Sayısı: 96

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Özet (Çeviri)

This dissertation considers two di erent issues in macroeconomics. The rst chapter reconciles the savings rate pro le with the earnings pro le by education. The second chapter tries to uncover the health production function. In the rst chapter, I reconcile the savings rate pro le with the earnings pro le by education. The permanent income hypothesis suggests that an individual with a steeper income pro le should save a lower fraction of his income. However, life-cycle pro les of the savings rate in U.S. data are at odds with this prediction. College graduates, who on average experience a much steeper income pro le than non-college graduates, exhibit a higher savings rate pro le. To reconcile this, I incorporate imperfect information about deterministic (ability, skill) and stochastic (shock) components of earnings pro les into a life-cycle model of consumption with heterogeneous agents and incomplete markets. I nd that the imperfect information model is able to achieve a higher savings rate pro le for college graduates. Higher skill heterogeneity for college graduates, which calls for a precautionary savings motive under imperfect information, accounts for this at the early ages. As labor market outcomes are realized, this uncertainty is gradually resolved. However, agents with low ability, who fail to accumulate assets in the early period, are unable to dissave in the later period. This accounts for the higher savings rate for college graduates at the later ages. I also quantitatively assess an alternative hypothesis, di erent time preference rates, for the savings rate gap by education. I conclude that accounting for the savings rate pro le that we see in the data requires an unrealistically large gap between the time preference rates of the two groups. In the second chapter, I try to uncover the health production function. Just like any production or consumption activity, the production of health involves both time and goods. For example, a typical household in the U.S. spends $3,000 on health each year and 20 minutes per day on exercise activity. However, most existing studies that incorporate health accumulation into life-cycle models focus on the expenditure as the only input for health production. Based on detailed data from the Medical Expenditure Panel Survey (MEPS) and the American Time Use Survey (ATUS), I construct the life-cycle pro les of health status, health expenditure, and time allocated to exercise. I nd that there are important and interesting di erences in the pro le of inputs and output of health: (i) more educated individuals are persistently healthier, (ii) health expenditures across education groups are similar, and (iii) more educated individuals allocate persistently more time to exercise. These pro les imply that the educational gaps in time allocated to exercise might contribute to the educational gaps in health capital. To quantitatively assess this, I compute a life-cycle model with an augmented health production function. I nd that the higher relative eciency of exercise to expenditure for more educated individuals might account for inputs and output of health at the early ages. However, it does not have much e ect at the later ages, since the aging e ect trivializes the education e ect in the health production technology.

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