incorporate the effects of macroeconomic uncertainty on private savings behavior. It is shown that the greater the uncertainty in … savings and, other things equal, the larger is the current account surplus. Empirical support for the model is found using …

This paper shows how uninsurable unemployment risk is crucial to qualitatively and quantitatively match macro responses … behaviors, triggering a fall in aggregate demand and supply. These precautionary behaviors increase the unemployment risk of the … imperfectly insured households, who strengthen precautionary saving. When the feedback loop between unemployment risk and …

two channels in driving aggre- gate consumption fluctuations in the US: (i) precautionary savings against un- employment … risk and (ii) MPC heterogeneity. I find that MPC heterogeneity is the dominant channel because a large fraction of …

Relations between national public and private savings, domestic investment, and the current account are analyzed with … for the US, Japan, Germany and the UK are compared with estimation results from partial modeling approached adopted in the … literature. The results from the two approaches are rather different. The simulation results indicate that private savings …

This paper establishes new evidence on the cyclical behaviour of household income risk in Great Britain and assesses … the role of social insurance policy in mitigating against this risk. We address these issues using the British Household …. We then estimate how income risk, measured by the variance and the skewness of the probability distribution of shocks to …