Search

The literature on fiscal policy has identified wealth elasticity of labor supply and agent heterogeneity as the linchpin of shaping different transmission mechanisms for fiscal policy. In this paper, I build these two important edifices on an otherwise canonical business-cycle model to conduct quantitative analyses of various fiscal policies. To underscore the relative importance of agent heterogeneity, I compare results from the model with agent heterogeneity with those from a standard model without agent heterogeneity. I also compare results from changes in wealth elasticity to analyze how the model ingredient delivers different macroeconomic and fiscal dynamics. The main finding reveals that in the context of the model formulated in this paper, the capital tax is the least detrimental to business cycles and fiscal states and the consumption tax is the most appropriate policy tool since it yields positive output and tax-revenue multipliers in the short and long runs. All the results from counterfactual experiments suggest that macroeconomic and fiscal outcomes hinge fundamentally on agent heterogeneity and wealth elasticity. An important value that this paper adds to the literature is to offer results from a comprehensive analysis of all possible fiscal policies by considering both essential forces. [ABSTRACT FROM AUTHOR]

Happiness can be experienced differently in young as compared to older adulthood, possibly due to shifts in temporal focus and differences in preferences for high- versus low-arousal affective states. The current project aimed to replicate initial evidence on age-related differences in the experience of happiness by investigating the positive affective correlates of everyday happiness; we further explored the role of thinking about the future in moderating such associations. We used daily life assessments from 257 participants (Mage = 48.3, SDage = 24.6; 68% female; 77% Asian [East Asian, South Asian, and Southeast Asian]; 73% postsecondary educated), combining four data sets collected at two locations (Vancouver, Canada; Hong Kong) with different age samples (older and younger adults). Participants provided up to 30 repeated daily life assessments of momentary affective states and thoughts about the future, over 10 days. Results replicate previous findings by showing that happiness was more strongly associated with low-arousal positive affect and more weakly associated with high-arousal positive affect among older compared to younger adults. Engagement in thinking about the future was higher among younger compared to older adults in general, but its role in moderating the association between happiness and positive affect varying in arousal levels was confounded by the age moderation. Separate analyses conducted for each age group indicate different roles of everyday thinking about the future in shaping happiness experiences for different age groups. Age and future thinking-related contours of happiness are discussed in the context of emotional aging theories. Public Significance Statement: This study investigates age-related differences in the experience of happiness. Older adults reported more low-arousal positive affect and less high-arousal positive affect compared to younger adults when experiencing higher happiness. Temporal focus of thoughts was examined for its role in shaping these age-group differences; findings suggest that its effect may differ across different life phases. [ABSTRACT FROM AUTHOR]

Older adults spend significant time by themselves, especially since COVID‐19. Solitude has been associated with positive and negative outcomes. Partners need to balance social connectedness with time for one's own needs. This project examines how individual and partner solitude are associated with daily affect and relationship quality in dyads of older adults and a close other. One‐hundred thirty‐six older adults plus a close other rated their relationship quality and reported affect, solitude, and its characteristics (desired and bothersome) every evening for 10 days. Over and above overall associations, individual and partner effects emerged; when individual desired solitude was up, participants reported more positive affect and their partners less negative affect. When bothersome solitude was up, participants and their partners alike reported more negative affect and less positive affect. Desired solitude was associated with more support, whereas bothersome solitude was associated with less partner support. Findings provide further evidence on the potential benefits of solitude, highlighting the importance of considering the social context of what is often believed to be an individual‐level phenomenon. [ABSTRACT FROM AUTHOR]