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A newsletter featuring an essay on economic policy issues of regional or national interest.

Last Updated: 04/26/16

Chicago Fed Letter

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No. 357

The VW Scandal and Evolving Emissions Regulations

Thomas H. Klier and Joshua Linn

In September 2015, Volkswagen (VW) admitted to having programmed nearly 11 million of its diesel vehicles to cheat on tailpipe emissions tests. To put VW’s emissions rigging into a broader context, the authors review the different approaches that the U.S. and Europe have historically taken in regulating automotive emissions and fuel economy. Moreover, they discuss the scandal’s implications for regulatory changes in both regions.

No. 356

Savings after Retirement: A Survey

Mariacristina De Nardi, Eric French and John Bailey Jones

Retired U.S. households, especially those with high income, decumulate their assets more slowly than implied by the basic life cycle model. The observed patterns of out-of-pocket medical expenses, which rise quickly with age and income during retirement, and longevity, which also rises with income, can explain a significant portion of U.S. retirement saving. However, more work is needed to disentangle these precautionary motives from other motives, such as the desire to leave bequests.