16 January 2018
Median wealth declined 44 percent between 2007 and 2010, inequality rose, and the relative indebtedness of the middle class expanded, Edward N. Wolff
reports. Mean and median wealth rebounded from 2010 to 2016. While mean wealth surpassed its 2007 peak, median wealth was still down by 34 percent. The racial and ethnic disparity in wealth widened between 2007 and 2016, and the wealth of younger households declined.
15 January 2018
In a cross-country analysis, Gordon M. Phillips
and Alexei Zhdanov
find evidence of a strong positive association between venture capital investments and lagged merger and acquisition activity, supporting the hypothesis that an active M&A market provides viable exit opportunities for VC companies and therefore incentivizes them to engage in more deals.
12 January 2018
Spouses and adult children immediately increase their health investments and improve their health behaviors in response to family shocks, and these effects persist for at least several years, a study by Itzik Fadlon
and Torben Heien Nielsen
11 January 2018
The fraction of households facing borrowing constraints increased sharply during the Great Recession, driving a large drop in aggregate consumption because poorer families have a high marginal propensity to consume, according to a study by Gene Amromin
, Mariacristina De Nardi
, and Karl Schulze
10 January 2018
Children from top 1 percent families are 10 times as likely to become inventors as those from below-median income families, an analysis by Alexander M. Bell
, Raj Chetty
, Xavier Jaravel
, Neviana Petkova
, and John Van Reenen
shows. Exposure to innovation during childhood has significant causal effects, as does growing up in a neighborhood or family with a high innovation rate in a specific technology class.