Figure 10: Welfare Losses, ∆W0 / W0, for German (EVS) Data, Gender = 0
(male), γ = 2, δ = 0.97, age = 30, 50, or 65, Education = Middle, Labor Income =
Median (age-specific) *
5
•—.
5
∏3
ω
∙σ
G
G
G
G
G
Q
Q
Q
Q
G
G
G
G
G
G
Q
Q
AAA
GAA
GG
A AAAA
GG
GG
Noncapital Income (age-specific median)
A 17,976 (age = 65)
Q 30,382 (age = 30)
G 36,444 (age = 50)
50,000 100,000 150,000 200,000 250,000
Net worth
* Age-specific quantiles for Net worth (25%, 50% and 75%) are for age = 30: 4,438; 15,433; 50,487;
for age = 50: 13,713; 56,397; 145,921; for age = 65: 15,580; 65,750; 191,312
53
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