-front financial incentives are an effective policy lever to change behaviour. The paper argues that incentives differ in their … transparency and in their complexity; individuals are more likely to respond to incentives that are both transparent and imply a … Resources Survey on these two tests of household responses to complex incentives. …

nontradables to tradables in Argentina, Brazil, Chile (ABC) and Mexico from 1990 to 2002. The real exchange rate is determined in … paper confirm the impact of exchange rate regimes on relative prices in all countries except Chile, which maintained …

-cycle framework how individuals respond to recessions. Our focus is on the sharp increase in savings rates that have been observed in … times. We show that the rise in the aggregate savings ratio is driven by increases in uncertainty, rather than tightening of …

precautionary saving and a shift toward safer assets in the years leading up to unemployment, and depletion of savings during … private savings can to some extent serve as a substitute for publicly provided unemployment insurance. -- unemployment …

flexibly adjusting savings to income variations as assumed by the Permanent Income Hypothesis (PIH). Fixed amount saving …