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The Effect of Health and Employment Risks on Precautionary Savings

Geyer, Johannes - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2011

This paper extends the idea of using ex-ante risk measures in a model of precautionary savings by explicitly simulating … specific effects. I find evidence for precautionary savings in response to the uncertainty measures. The results are robust and …

Persistent link: https://www.econbiz.de/10009360169

Household Savings Decision and Income Uncertainty

Beznoska, Martin; Ochmann, Richard - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2010

uncertainty on households' consumption-savings decision. Applying a structural demand model to German survey data, we estimate the … uncompensated interest rate elasticity for savings, in line with the literature, to around zero. Accordingly, any policy …-induced variation of net returns to savings is expected to have no significant effects on the level of savings. Moreover, we find …

Persistent link: https://www.econbiz.de/10008490411

Unemployment and Portfolio Choice: Does Persistence Matter?

Kuzin, Vladimir; Bremus, Franziska - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2010

We use a life cycle model of consumption and portfolio choice to study the effects of social security on the investment decisions of households for the European case. Our model is mainly based on the one developed by Cocco, Gomes, and Maenhout (2005). We extend it by unemployment risk using...

Persistent link: https://www.econbiz.de/10008583477

Longevity, Life-Cycle Behavior and Pension Reform

Haan, Peter; Prowse, Victoria - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2011

How can public pension systems be reformed to ensure fiscal stability in the face of increasing life expectancy? To address this pressing open question in public finance, we estimate a life-cycle model in which the optimal employment, retirement and consumption decisions of forward-looking...

Persistent link: https://www.econbiz.de/10009195630

Confronting the Representative Consumer with Household-Size Heterogeneity

Koulovatianos, Christos; Schröder, Carsten; Schmidt, Ulrich - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2010

Much analysis in macroeconomics empirically addresses economy-wide incentives behind consumer/investment choices by using insights from the way a single representative household would behave. Heterogeneity at the micro level can jeopardize attempts to back up the representative consumer...

Persistent link: https://www.econbiz.de/10008645018